According to Cailian News on July 10, Federal Reserve Chairman Powell said that the Fed does not need to wait until inflation falls to 2% before starting to cut interest rates. Federal Reserve Chairman Jerome Powell said at a monetary policy hearing of the Senate Banking Committee on July 9 local time that high inflation is not the only risk facing the Fed, and reducing policy restrictions too late or too little may cause excessive weakening of economic activity and employment. He also pointed out that the US economy is showing a solid trend, despite strong growth momentum in the second half of last year and a slight slowdown in GDP growth in the first half of this year.

Powell's speech indicates that the Fed's policy stance may change. Previously, the Fed has always emphasized the goal of reducing the inflation rate to 2% and said that it would not consider cutting interest rates before achieving this goal. However, Powell's latest statement means that the Fed may start cutting interest rates before the inflation rate falls to 2%, which may be because the Fed believes that the inflation rate has been controlled, or because the Fed is worried about slowing economic growth or other risks.

The Fed's interest rate policy has an important impact on the global economy and financial markets. If the Fed starts to cut interest rates, it may lead to a depreciation of the US dollar, a rise in the stock market, and a fall in the bond market. In addition, the Fed's interest rate cut decision may also affect the central bank policies of other countries, thus having a broader impact on the global economy.

Markets and economists will pay close attention to the Fed's future actions and policy statements to understand their impact on the economy and the market. At the same time, investors also need to reasonably adjust their investment portfolios according to their risk tolerance and investment goals.

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