A brief summary of Powell’s speech in the early morning:

1️⃣The prospect of interest rate cuts: It is reasonable for the market to feel that the FOMC is closer to cutting interest rates. It will choose to cut interest rates as soon as September. The risk of acting too early and waiting too long must be weighed. Therefore, "zero to several interest rate cuts this year" are all conceivable scenarios.

2️⃣Inflation: The current decline in inflation is better than in 2023, and the scope is broader. As a result of the good data, our confidence that inflation will continue to fall towards the target of 2% has grown.

3️⃣Employment: Labor market conditions have returned to pre-epidemic levels, strong but not overheated. Downside risks to the labor market are actually low. Particular attention is paid to private sector employment needs.

4️⃣Election: I absolutely believe that the potential Federal Reserve interest rate cut in September has nothing to do with political factors. The Federal Reserve has never used (policy) tools to oppose a party or the election results, and will not determine FOMC policy based on the results of the US election.

5️⃣Digital Currency: The FOMC did not discuss (whether to issue) the Federal Reserve’s digital currency at all. Progress on central bank digital currencies (CBDC) has not been significant, and there are no plans to discuss this issue with Congress.