Powell's speech has not started yet, but analysts have already summarized the key points of his speech.
On August 23, market analysts believe that Powell's speech tonight will have three key points.
First, stand firm, regain the guidance of the expected interest rate cut in September, and clarify the factors that affect the speed and magnitude of subsequent interest rate cuts;
Second, in combination with the theme of this meeting, summarize the lessons learned from the past few years of dealing with the epidemic and the resulting high inflation;
Third, look to the future and lay the foundation for the monetary policy framework assessment to be completed in 2025.
In addition, the focus of the market is whether Powell will release information about the node and magnitude of the first interest rate cut, as well as the path of subsequent interest rate cuts tonight. So far, despite a steady decline in inflation, the US economy has remained strong, and economists expect Powell to indicate that the Fed may announce the start of interest rate cuts at the September meeting.
However, economists also believe that the Fed chairman may avoid being too specific. After all, before the Fed's September meeting, the market will also usher in a key non-farm payrolls report. Powell doesn't want to make too many promises at a moment when the outlook could change, so he may not be able to answer Wall Street's biggest question: How fast will interest rates fall?
