PBoC: Market Should Not Regard Powell's Speech as the Starting Point of a Series of Easing Measures
BlockBeats News, August 26th - A research report released by Zhongjin on August 26 stated that Federal Reserve Chairman Powell's speech at the Jackson Hole meeting was seen by the market as a "dovish" signal of monetary easing. However, Powell's comments did not provide a strong indication of the duration and extent of the interest rate cut, but merely clarified the Fed's policy "reaction function" - that is, when the risk to employment is greater than inflation, the Fed tends to lower interest rates. However, under significantly higher tariff rates and tightened immigration policies, the risks of both employment and inflation coexist. If the risk of inflation surpasses that of employment, Powell can still pause interest rate cuts using the same "reaction function."
Therefore, the market should not interpret Powell's speech as the beginning of a series of easing measures, but should recognize the challenges faced by monetary policy when the goals of employment and inflation are at odds. If tariffs and immigration policies further escalate "stagflation-like" pressures, putting the Fed in a dilemma, there will not be a true meaning of monetary easing. Market risk appetite may decline, and volatility may intensify as a result.
You may also like

Dune Stablecoin Research: The Flow and Demand of a $300 Billion Market

Stripe Annual Letter: New cognitive density is extremely high, especially the 5-level model of "AI + Payments"

Sam Altman's Twenty-Four Hours: The Pentagon said "no" twice, but only one was serious

The US-Iran Conflict Spreads to the Crypto Space: What to Expect in the Market on Monday

Lily Liu, the chair of the Solana Foundation, shouted "Don't waste time on crypto," is the crypto industry really dead?

The little deer live by the water and grass

The world belongs to Chinese people who speak English

Why Stop at 126K? Michael Saylor Breaks Down BTC Stagnation and Retail Absence Truth

Virtuals Protocol's inaugural Titan project: ROBO aims to give a wallet to a robot

Stablecoin Latest Report: Actual Distribution and Circulation Much More Notable Than Supply

Paradigm's New Arithmetic: When Crypto Can't Hold 12.7 Billion, AI Becomes the Answer

Wintermute Founder: In the Lost Cryptocurrency Market, What Can We Still Do?

$1.3 Billion Debt: BitDeer Faces Tough Battle

Anthropic's IPO Gamble: At the Most Unlikely Moment, It Chose to Say No

Paradigm's Math Problem: $12.7 Billion, Too Big for a Single Crypto Fund

Ethereum Unveils Scaling Roadmap, What's Different This Time?

Anthropic Ban Wave, OpenAI $100 Billion Funding Controversy: What Is the Overseas Crypto Community Talking About Today?
