Outcome of Trade Talks Is Key For Fed, Dollar Outlook -- Market Talk
Fed's Wait and See Stance Could Persist Through to September
Fed Meeting Provides Limited Fodder for Bond Investors -- Market Talk
U.S. Fed Likely to Delay Rate Cuts Amid Tariff Risks -- Market Talk
Fed Had to Show It Can't Be Bullied Into Cutting -- Market Talk
The New Bond King: Inflation in the USA may reach 4% by the end of the year, but the Federal Reserve may be forced to cut interest rates, and even initiate YCC.
The new bond king warns that given the current situation, by the end of this year, the inflation rate in the USA will most likely exceed 4%. In a high-inflation environment, the Federal Reserve may not reduce interest rates, as this could lead to greater trouble in the long term. However, high interest rates may result in external shocks, and due to certain liquidity issues, the Federal Reserve may ultimately lower interest rates and even initiate YCC.
Fed Could Start Rate Cuts in September -- Market Talk
Dollar Rises After Fed Decision, Trump Remarks on Trade Deal -- Market Talk
HANG SENG BANK: The Federal Reserve's attitude toward interest rate cuts remains cautious, and the market will temporarily maintain a wait-and-see approach.
HANG SENG BANK believes that the Federal Reserve's attitude towards when to cut interest rates remains cautious, and the investment market will temporarily adopt a wait-and-see approach until there is substantial progress in Trump's reciprocal tariffs and trade negotiations before a clearer direction may emerge.
Fed's Mandates Likely to Move in Opposite Directions -- Market Talk
Latest polls: 40% of the public believes that the USA has entered a recession, and over 90% have felt the inflation.
On Tuesday, Eastern Time, a survey by The Economist/YouGov showed that 40% of Americans believe the USA is already in a recession; the survey also found that 81% of Americans consider the inflation issue very important, 47% expect prices to be higher in six months, and 96% of respondents have already felt the impact of inflation.
Fed's Next Window for Rate Cut Unlikely Before September -- Market Talk
The word "wait" has been repeated 22 times! What exactly is Powell, who is hesitant to lower interest rates, afraid of?
① Powell used different expressions of the word "wait" (such as waiting, await) up to 22 times last night to emphasize that the Federal Reserve will not rush into action. ② In the wave of global interest rate cuts, what exactly is Powell afraid of?
The Federal Reserve is taking a wait-and-see approach to economic uncertainty, while Trump's tariff policy poses dual risks of inflation and unemployment.
In the face of increasing uncertainty in the economic outlook, the Federal Reserve announced on May 8 to maintain the federal funds rate in the range of 4.25%-4.5%. This decision resisted the pressure from President Trump to quickly cut interest rates. The federal funds rate, as a benchmark for short-term borrowing between Banks, directly affects the loan rates for businesses and Consumers, and is an important tool for the Federal Reserve in managing the economy. Federal Reserve Chairman Powell stated at the press conference that current economic data has not yet reflected the full impact of trade policies, but potential risks are rising. In particular, the uncertainty stemming from Trump's tariff policies could lead to inflation rising simultaneously.
GF SEC: The Federal Reserve maintains interest rates unchanged, with rate cut expectations postponed to July.
Powell believes that tariffs may lead to higher inflation and lower growth, but the Federal Reserve cannot make a definitive determination before the data is released.
An awkward annual event! Beisent: One must believe in the USA. Other guests: Overseas Assets are more appealing.
① Every May, the Milken Global Conference held by the Milken Institute often gathers a large number of top global talents. The conference aims to jointly address the world's most pressing challenges and uncover the most promising opportunities of this era; ② At this year's annual event, US Secretary of the Treasury Yellen, who attended and delivered a speech, seemed to be in quite an awkward position.
Jerome Powell Remains Hawkish, Keeps Rates On Hold
Dollar on Front Foot After Fed Signals No Rush to Cut Rates
Full text of Powell's press conference Q&A: Wait and see, there will not be a preemptive interest rate cut.
Powell stated that the economy has remained resilient, the policy positioning is correct, and the Federal Reserve is now in a favorable position to observe, without the need to rush into action, as the cost of further observation is relatively low. Regarding the recent divergence in the USA's soft and hard data, Powell mentioned that looking back over the past few years, the connection between sentiment data and Consumer spending has always been weak, lacking a strong correlation. Powell also noted that he has never proactively requested to meet with any president and will not do so in the future.
Why the Fed Isn't Ready to Join Other Central Banks in Cutting Rates -- WSJ