[Industry News]: Late at night, the strongest signal to cut interest rates! Global asset earthquake
3,503 
August 26, 2024, 10:03 AM [Late at night, the strongest signal to cut interest rates! Global asset earthquake]#Powell says the time has come for policy adjustments #On the evening of August 23, Beijing time, Federal Reserve Chairman Powell delivered a speech at the annual meeting of global central banks in Jackson Hole. When Powell made it clear that "the time for policy adjustment has come," the global market ushered in a surge. The prices of U.S. stocks, gold, and crude oil rose hand in hand; intraday yields of most U.S. bond varieties fell; the U.S. dollar index plunged straight, falling back to around 100.7. Powell said,"We do not seek or welcome further cooling of labor market conditions. The upside risks to inflation have diminished and the downside risks to employment have increased. Now is the time to adjust policies."
Regarding inflation and employment prospects, Powell said that he is increasingly confident that inflation will sustainably return to 2%(the Fed's target inflation rate) and that the Fed will make every effort to support a strong labor market while making further progress in achieving price stability. The current level of the Fed's policy interest rate provides "sufficient room" to address risks, including preventing further weakness in the labor market.
Regarding the pace and scope of interest rate cuts, Powell also emphasized that "the direction forward is clear" and the timing and pace of subsequent interest rate cuts will depend on the balance of data, prospects and risks. (China Securities Journal)