According to Odaily, Nick Timiraos, a Wall Street Journal reporter known as the 'Fed's mouthpiece', recently wrote that Federal Reserve Chairman Powell has brought the possibility of interest rate cuts back into focus. Powell's speech highlighted a cautious optimism, a sentiment that had faded after disappointing inflation data was released in April. He stated that the economy has made 'significant progress', 'real progress', and 'quite a lot of progress' in achieving stable growth while reducing inflation. However, his cautious attitude towards interest rate cuts suggests that the likelihood of a rate cut at the Fed's meeting later this month is still small.
In addition, Powell declined to reveal whether he is preparing for a rate cut in September. He said, 'I will not confirm any specific dates here today.' This statement leaves the future of interest rate cuts uncertain, keeping investors and economists on their toes as they anticipate the Fed's next move. The potential for rate cuts could have significant implications for the U.S. economy, affecting everything from the strength of the dollar to the cost of borrowing. As such, Powell's comments will be closely watched in the coming months.