Key Points of Jerome Powell's July 31st Press Conference

Interest Rate Outlook The market's feeling that the FOMC is closer to cutting interest rates is reasonable, with the earliest possible rate cut in September. The risks of acting too early versus waiting too long must be weighed. The scenario of "zero to multiple interest rate cuts this year" is imaginable. We are not currently considering a 50 basis point rate cut, and the meeting minutes will indicate the range of discussions among FOMC participants regarding the magnitude of rate cuts.

Inflation The current situation of declining inflation is better than in 2023, and it is more widespread. Due to good data, our confidence in inflation continuing to fall towards the 2% target has increased.

Employment Currently, the downside risks facing the labor market are actually relatively low. Particular attention is paid to employment demand in the private sector.

Elections It is absolutely believed that the potential Fed rate cut in September has nothing to do with political factors. The Fed has never used policy tools to oppose a party or election result. FOMC policy will not be determined based on the results of the U.S. elections.

Digital Currency The FOMC has not discussed the issue of issuing a Fed digital currency at all. Progress on central bank digital currencies (CBDCs) is not significant, and there are no plans to discuss this issue with Congress