Powell's important speech
Tomorrow morning Master Bao will give a speech. It is the most important speech this month. Brothers who are not sleeping can pay attention to it.
In the past two weeks, FOMC voting committee members have come out to speak almost every day, and there are both doves and hawks, so the market is paying close attention to Master Bao's speech and his attitude towards the next monetary policy.
At present, the U.S. economy is still resilient, and both non-agricultural and consumer data show the continuation of resilience. Coupled with the rise in oil prices, CPI has entered a period of stubbornness. Judging from these data, the Federal Reserve should maintain a tough attitude.
Raising interest rates is a monetary policy tool that will be stopped when problems arise. The 10-year U.S. debt is 4.9+%, close to the 5% red line. Once this position is touched, doves will be released to appease the market.
Therefore, the FOMC is also quite difficult. Personally, I think there will be more dovish remarks this time. Even if there is no interest rate increase, balance sheet reduction + high U.S. bond yields are equivalent to continuous interest rate increases.
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