Fed Chairman Powell made a statement on inflation: policy remains on the sidelines
The latest news shows that Fed Chairman Powell made a speech on inflation, saying that current inflation is still above the target level and further inflation trends are uncertain. Although inflation has slowed down, it is still higher than the 2% target set by the Fed. He pointed out that the inflation data received this year was higher than expected, but long-term inflation expectations remained stable.
Powell said that the current inflation data did not give the Fed greater confidence, so it may take longer than previously expected to gain greater confidence. The Fed will continue to adhere to the 2% inflation target and will make decisions step by step based on the upcoming data.
It is particularly noteworthy that Powell also mentioned the rise in short-term inflation expectations, believing that policy tightening may put pressure on demand. He said that the Fed will make decisions step by step based on the upcoming data, and said that the next policy interest rate adjustment is unlikely to be a rate hike. If interest rates are to be raised, evidence needs to be seen that the current policy is not enough to reduce inflation to the Fed's target level.
This statement has attracted widespread attention from the market, and investors continue to pay attention to the Fed's attitude on inflation. For investors, paying attention to the Fed's policy direction will help better grasp market trends and make more informed investment decisions.
