Powell avoided the question of whether the Fed would cut interest rates in September and emphasized the two-way risks of monetary policy

According to Jinshi, in his speech on July 2, Fed Chairman Powell avoided the question of whether the Fed would start cutting interest rates in September. He emphasized the two-way risks of monetary policy, believing that cutting interest rates too early could reignite inflationary pressures, while if the rate cuts were too late, the Fed could cause unnecessary damage to the economy. The market currently expects the probability of a rate cut by September to be about 70%.