[List of highlights of Powell’s speech]💹💹💹
1. Interest rate outlook: It reiterated that interest rates may be maintained at a high level for a longer period of time. It does not believe that the next step may be to raise interest rates, and is more likely to maintain policy interest rates at current levels.
2. Inflation outlook: Confidence in the fall in inflation is lower than before. The lack of further progress in inflation in the United States in the first quarter is noteworthy; the inflation rate is expected to fall quarter-on-quarter.
3. Economic prospects: The U.S. economy is performing very well and has a very strong labor market; GDP is still expected to grow at a rate of 2% or higher, benefiting from the addition of new labor forces.
4. Market reaction: Since Powell's speech, gold has basically maintained sideways fluctuations, rising as high as $2,356.72; the three major U.S. stock indexes have generally shown a "V" shaped trend.
5. Latest expectations: The market currently expects the Federal Reserve to cut interest rates by a total of 40BP this year; the probability of interest rate cuts in June and September has stabilized at around 50%, which is basically the same as before Powell’s speech.
The US CPI data will be released at 8:30 tonight, so stay tuned!
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