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In the latest Interest Rate decision, the U.S. Federal Reserve chose to maintain the current rate level unchanged and continue executing the balance sheet reduction policy. Federal Reserve Chairman Powell showed a relatively tough attitude in the subsequent FOMC (Federal Open Market Committee) speech, clearly stating that the Federal Reserve's primary task is to control inflation, rather than drop the cost of government borrowing or housing mortgage loans.
Powell emphasized that the upward pressure on prices due to factors such as government trade policies remains high in the current economic environment. The Federal Reserve will not consider easing monetary policy until more economic data is obtained. This statement reflects the Federal Reserve's cautious attitude towards the inflation issue.
Powell's remarks have had a significant impact on the financial markets. Investors' expectations for a rate drop by the Federal Reserve in September have noticeably decreased, falling from nearly 70% before the meeting to below 50%. This change reflects the market's adjustment in its outlook on the future direction of the Federal Reserve's policy.
The Federal Reserve's decision and Powell's remarks highlight the complex situation currently facing the U.S. economy. On one hand, inflationary pressures still exist; on the other hand, the performance of economic growth and the job market also requires close attention. In this context, the Federal Reserve chooses to remain cautious and continue monitoring changes in economic data in order to formulate the best monetary policy in the future.