Federal Reserve bombshell

On August 23, local time, Federal Reserve Chairman Powell said at the Jackson Hole Global Central Bank Annual Meeting that it is time to adjust policy, and the timing and speed of interest rate cuts depend on the upcoming data, the changing outlook, and the balance of risks.

Powell said he is increasingly confident that inflation will return to the central bank's 2% target. He said that at present, the labor market rather than prices pose a greater threat to the economy.

"We do not seek or welcome further cooling of labor market conditions." Powell said.

On August 21, local time, the minutes of the July 2024 meeting released by the Federal Reserve showed that the vast majority of participants believed that if the data continued to be close to expectations, it might be appropriate to ease monetary policy at the next meeting.

On July 31, local time, the Federal Reserve's July interest rate resolution showed that the target range of the federal funds rate would continue to remain unchanged at 5.25%-5.5%. Fed Chairman Powell said at the press conference that if the inflation test is met, the reduction in the policy interest rate "will be discussed at the September meeting at the earliest."

Data released by the U.S. Bureau of Labor Statistics on August 14 showed that the U.S. CPI rose 2.9% year-on-year in July, the smallest year-on-year increase since March 2021, and the previous value was 3%#美联储货币纪要 #美联储何时降息？