Powell's speech this time seems quite straightforward. He said that the current economic foundation is still good, the job market is very strong, and the unemployment rate is low, basically at its peak, not the source of inflation. But inflation is indeed still troublesome; although it has come down a bit from its peak, it is still higher than their target of 2%. He also mentioned the tariff issue, saying that the tariffs added this year are quite troublesome and may cause prices to rise for a longer period, making things more expensive, and it will also drag down the economy. The current stance of the Federal Reserve is to hold steady, in a good position, and wait for more data before making decisions.
Market sentiment is not great, as everyone is mainly worried about the fluctuating trade policies. Powell also made it clear that controlling prices and maintaining employment can sometimes conflict with each other, making it quite difficult to balance. Overall, the Federal Reserve is currently focused on inflation, especially the new pressures brought by tariffs, and is not in a hurry to lower or raise interest rates. For ordinary people, the pressure of prices has not decreased, and increased tariffs may make wallets even thinner.
More reports to come
