Powell kept the interest rate unchanged and said:
1️⃣No rush to cut interest rates: The Fed will not cut interest rates unless there is full confidence that inflation is moving toward the 2% target (always emphasized: data have not given us that greater confidence.)
2️⃣Evaluate economic data: It is necessary to continue to pay attention to inflation and employment. The focus is still on employment rate. Currently, high wages are the main cause of inflation.
3️⃣Risk management: Relaxing policies too early or too much may reverse the progress made in controlling inflation. At the same time, if policies are relaxed too late or too little, it may have an adverse impact on economic activity and employment. The Fed will make decisions based on a full assessment of risks.
4️⃣Future outlook: If the economy performs well and inflation persists, the Fed is prepared to maintain the current interest rate range. If the labor market unexpectedly weakens or inflation falls faster than expected, the Fed is also prepared to respond accordingly.
⭕️In short, it is currently cautious about interest rate cuts, emphasizing that interest rate adjustments will only be considered when a sustained downward trend in inflation is seen.
During and after the speech, $BTC $ETH showed signs of falling.