Last night, the overall macroeconomic situation still delivered some good news that was beyond the general market expectations.
First, the Ministry of Finance confirmed the Treasury bond repurchase plan, which was the first Treasury bond repurchase action in the past 20 years, which will release liquidity to the market.
Second, the Federal Reserve cut the monthly balance sheet reduction (selling Treasury bonds) by half, which exceeded Wall Street's expectations. This will cause cash to flow out of the financial system, including bank deposits deposited at the Federal Reserve, which is the so-called reserve. You can understand the impact on liquidity as the reserve requirement ratio cut by the People's Bank of China.
Then Powell said at the press conference after the announcement of the interest rate decision that the next move of the FOMC is unlikely to be a rate hike. The worst expectations of the market have been ruled out. Although Powell's forward guidance last night lacked the sentence he said in previous press conferences: "It may be appropriate to start cutting interest rates sometime this year", Powell's performance last night was not hawkish.
The US dollar index fell back, and it is suspected that the Bank of Japan took the opportunity to intervene for the second time to defend the yen. The yen rose to 153.04 against the dollar from about 157.58 as more than $4 billion of yen-related futures were traded in the final stages of the trading session
