Fed Chairman Powell said that rate cuts can maintain a soft landing, but he believes there is no need to rush.

Fed Chairman Powell said: Although the Fed will continue to cut interest rates to support economic growth, it is not in a hurry to cut interest rates significantly.

He stressed that the economic situation is sound and the Fed's goal is to maintain stability without rushing to cut interest rates further.

Powell said that the current economic situation in the United States is good and the Fed intends to use tools to maintain this situation. There is no rush to cut interest rates quickly.

If the economy performs as expected, it means that there will be further interest rate cuts this year, a total of 50 basis points. The "New Fed News Agency" commented that the Fed currently sees no reason to cut interest rates as much as it did at the most recent meeting.

Powell said in a speech to the National Association for Business Economics that the recent 50 basis point interest rate cut does not mean that there will be further significant interest rate cuts in the future.

There may be two more interest rate cuts this year, each of 25 basis points, which is different from the market's expectations for aggressive policies.

He stressed that the Fed's goal is to keep the economy sound and policies will be adjusted based on economic data. Powell is confident in the economy and inflation, saying that inflation will fall further and the labor market does not need to cool down significantly. Market reactions show that investors have different expectations for the extent of future rate cuts.

Key points of the speech:

Powell suppressed expectations of a large rate cut: Powell said in his speech that the recent 50 basis point rate cut does not mean that the same aggressive approach will continue in the future. There may be two more small rate cuts this year, 25 basis points each.

Policy orientation is linked to economic data: If the economic data meets expectations, the Fed will cut interest rates as planned, keep the economy stable, and avoid aggressive rate cuts. Powell emphasized that policies will be adjusted according to data, and there is no preset path.

Confidence in the economy and inflation: Powell believes that inflation will continue to slow, and labor market conditions do not need to cool further. The Fed's goal is a soft landing to avoid a significant increase in unemployment.

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