Last night, the speech of Fed Chairman Powell put pressure on the sentiment of financial markets. The US dollar index rose in the short term, spot gold fell further in the short term, US stocks accelerated their decline in the late trading, and Bitcoin also suddenly fell sharply.
Fed Chairman Powell said that because the recent performance of the US economy is "very strong", the Fed does not need to "rush" to lower interest rates, and will carefully observe to ensure that certain inflation indicators remain within acceptable ranges.
He claimed: "The economy has not sent any signals that we need to rush to lower interest rates. The economic strength we are seeing now gives us the ability to make prudent decisions."
Federal funds futures trading reflects the possibility of a 25 basis point rate cut at the Federal Reserve's December meeting. It fell to around 62% on Thursday afternoon, Eastern Time, which was lower than the earlier 82.5%.
The producer price index (PPI) in the United States for October, released on Thursday, rose 0.2%, in line with expectations. The October consumer price index (CPI) released on Wednesday was in line with expectations, but still showed that the Fed's efforts to fight inflation have not yet won. The core CPI rose 0.3% for the third consecutive month, with a year-on-year increase of 3.3%.
Former U.S. Treasury Secretary Summers said that if President-elect Trump really fulfills his promise, the United States will once again experience a serious inflation crisis.
In an interview with the media that day, Summers pointed out that Trump's promised domestic tax cuts, tariff increases, and deportation of illegal immigrants will have a serious impact on the U.S. economy
