On September 23, local time, Federal Reserve Chairman Powell said that rising downward risks in the employment market were the key reasons for lowering interest rates, a step in the policy position toward "neutral" and no future policy direction. He pointed out that consumer spending slowed, enterprise confidence was affected. Regarding the next budget meeting, he did not release strong signals. On the market side, the three major indices of the U.S. stock collectively fell, cryptocurrency concept shares fell ahead, oil and gas equipment, energy shares rose.
by every editor.
On September 23, local time, Federal Reserve Chairman Powell stated on policy trends and economic situation, pointing out the risks of increased downturn in the job market are the key reasons that prompted the Federal Reserve to take interest rate cuts last week.
Powell said the move was a step in the policy position’s shift to “neutral” and stressed that there was no forward-looking policy direction. He acknowledged that the current inflation level is still slightly higher than the target, with the core PCE inflation rate expected to be 2.3% in August, where the rise in commodity prices mainly reflects the impact of tariffs rather than widespread inflation pressure.
Powell also pointed out that consumer spending has shown signs of slowing down, business confidence has been affected by uncertainty, and the vitality of the labor market has weakened.
Powell stressed that the Federal Reserve must be alert to the ongoing inflation effects of tariffs.
Powell noted that the tariff hikes will take time to digest in the supply chain, leading to a one-off rise in price levels, but that the impact will spread over several quarters.
“The latest data and surveys show that these price increases mainly reflect tariff increases, rather than wider price pressures,” Powell said.
With regard to the next interest rate meeting on 28-29 October, Powell did not release a strong signal, but he did not explicitly refute the market’s generally expected re-cutting of interest rates. He said officials would pay attention to growth, employment and inflation data and ask themselves, “Is our policy position appropriate? if not, we will adjust.”
According to forecasts submitted at last week's meeting, slightly more than half of Fed officials expect at least two more interest rate cuts this year, implying that October and December are likely to move continuously.
These predictions indicate that worries about job market cracks are rising in a complex policy environment, making it harder to judge the economic situation.
Powell and other Fed officials were asked how concerned they were about market prices and whether there was a higher tolerance for high valuations.
Powell replied, “We’re really looking at the overall financial environment and asking ourselves whether our policies affect the financial environment in the way we expect.
The U.S. stock market has continued to climb since the U.S. Federal Reserve announced 25 basis points on Wednesday, and the three major equity indices have continued to refresh historic highs.
“The market will listen to what we’re saying and interpret it to judge the interest rates that may be moving forward and count those expectations into the price,” Powell said when he talked about mortgage rates.
But despite Powell’s acknowledgment that the stock market is high, he said it’s not “the time for rising financial stability risks.”
Market aspect. The three major U.S. stock indexes collectively closed down, with the Dow falling 0.19%, the Nasdaq falling 0.95%, and the S&P 500 falling 0.55%.
Major science and technology stocks generally fell, Oracle fell more than 4%; Amazon fell more than 3%; NVIDIA fell more than 2%, market value evaporated overnight $12.59 billion (approximately RMB8954 billion); Tesla and Microsoft fell more than 1%.
Circle dropped more than 4 percent, Coinbase dropped more than 3 percent, oil and gas equipment, energy stocks rose more than seven percent, and Nabees grew more than five percent.
The Nasdaq China Gold Range Index fell by 2.22%, the bullshit fell by more than 8%, fell by more than 5%, fell by more than 4%, fell by more than 3%, and fell by 3%.
For the first time in four years, Alibaba Group Holdings Co. Ltd. was re-acquired by Cathie Wood’s fund, which rose to its highs over the years due to Alibaba’s positive advances in artificial intelligence. A daily trading report from Wood’s Archer Investment Management Company showed Monday that the company’s two trading open index funds bought Alibaba’s U.S. Deposit Credentials (ADRs). According to Alibaba’s holding report, the total value of these stocks was approximately $16.3 million. On Tuesday, Alibaba’s U.S. Deposit Credentials price reached its highest level since November 2021, almost doubling since the beginning of the year.
Rich time A50 period refers to a continuous night disk decline of 0.25%, reporting 15030 points.
WTI crude oil futures rose 1.81%, $63.41/barrel. Brent crude oil futures rose 1.6% and $67.63/barrel.
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