Powell has been tough for so long, and now he finally gives in.
"There is no need to wait until inflation drops to the Fed's 2% target before cutting interest rates, because that would be too long. The impact of monetary policy is lagging. If interest rates are kept too high for too long, it will inhibit economic development." Powell's remarks are undoubtedly a hint.
The probability of the Fed's "first rate cut" in September has greatly increased.
What is different from the beginning of the year is that the focus of market discussion is no longer whether to cut interest rates, but when the Fed will "cut interest rates for the first time."
After the rate cut is implemented, everyone will discuss "how many times the rate cut will be implemented."
We should take a long-term view and look forward to the macroeconomic gains of multiple rate cuts in the future, and not be trapped in short-term fluctuations.
Although it is still some time before the rate cut is implemented, investment is to invest in expectations, and waiting for the news to be implemented will lag behind others.
In the face of a clear rate cut, every time Powell relaxes his mouth a little and every time the CPI data improves, expectations can be raised in advance.
The expected increase is always faster than good news~
