Powell delivered an important speech last night! The Fed's interest rate cut is becoming clearer and clearer, mainly mentioning two points.
First, Powell said that inflation has slowed down significantly recently. Although it is still higher than the 2% target, "considerable progress" has been made in reducing inflation. It can be seen that the policy of reducing inflation is very effective, so it will be quick to reach the 2% target, and the Fed will be one step closer to cutting interest rates.
Second, Powell mentioned: High inflation is not the only risk we face. We have seen that the labor market has cooled significantly in many aspects, which is not the source of the current general inflationary pressure in the economy. It can be seen that the risk of high inflation to the US economic situation has been reduced, and it is also very important to balance inflation and employment.
Overall, the interest rate cut depends on the US CPI and employment form. The interest rate cut can basically be determined as a matter of sooner or later, which is nothing more than one or two months sooner or later. Then when the United States starts to cut interest rates, it will be the time for funds to be injected into the market and the industry to fully recover. So the second half of the year is still worth looking forward to.