【Powell's speech summary】

1. The recent core PCE (2%) data is in full compliance with the Fed's previous expectations;

2. Therefore, the Fed believes that there is no need to cut interest rates prematurely, especially when there are no obvious problems with employment data;

3. If economic data is within a safe and reasonable range for a long time, they will maintain the current interest rate for a longer period of time;

4. Even if the Fed cuts interest rates, it is unlikely to lower interest rates to the level during the epidemic (0 interest rate);

5. Hard talk: Powell believes that the current US economy is not harmed by high interest rates;

6. The Fed believes that the current economic data shows that the probability of entering a recession in the future is very low;

7. Avoiding the question of slowing down the pace of balance sheet reduction, it means that it still wants to continue the process of balance sheet reduction.