Powell's speech this time was really tough! He directly poured cold water on the possibility of a rate cut in September and subtly criticized Trump's tax reform policy as ineffective. Specifically:
1. The impact of tariffs is hard to judge: It's still too early to say how tariffs will affect prices, but ordinary people's shopping bills are already feeling the price increases. The price data in the next few months will be more apparent, but the process of price increases is slower than previously thought.
2. The Federal Reserve stands firm against inflation: The Federal Reserve plans to ignore the price pressures brought by tariffs without raising interest rates. This approach is really bold, clearly indicating that they do not intend to change monetary policy due to tariffs.
3. Tax reform policy is denied: The so-called 'Great Beautiful Tax Law' and similar fiscal policies have no real stimulating effect on the economy. Powell directly poured cold water on this, stating that these policies do not particularly help the economy.
4. Debt costs are ignored: The changes in interest rates for government borrowing are simply not a concern for the Federal Reserve. The level of debt interest rates does not affect their decision-making; this attitude is quite direct.
In summary, Powell's actions this time are both tough and sharp, suggesting that a rate cut is unlikely and openly denying Trump's economic policies. It seems that the economic policy divergence between the Federal Reserve and the government is becoming increasingly obvious.