50 basis points of interest rate cut has landed! Analysis of the key points of Powell's speech [Focus]
Economic situation judgment:
-Economic growth: Economic activity continues to expand at a steady pace, and growth in the second half of this year is expected to be the same as in the first half.
-Inflation situation: Inflation levels are close to the target, and upside risks are gradually weakening, but downside risks in the labor market have increased.
About the decision to cut interest rates:
-Today's decision to cut interest rates by 50 basis points has been widely supported. Although there are different opinions, there is a strong consensus within the committee and it is not considered a hasty decision.
-The Fed believes that this is a timely action, indicating that it will not lag behind the situation.
Interest rate path statement:
-There is no preset fixed interest rate path, and each meeting will make decisions based on the latest economic data.
-The Fed may speed up, slow down or suspend interest rate cuts. If the economy is stable, the pace of interest rate cuts may slow down; if the labor market deteriorates, policies will be adjusted in a timely manner.
Other key points:
-There is no fixed rule to determine the extent of interest rate cuts.
-The Fed emphasized that it will continue to maintain its independence to ensure that policy making is not interfered with by the outside world.
