The Federal Reserve on Wednesday decided to keep the benchmark interest rate unchanged, maintaining the federal funds rate target range at 3.50% to 3.75%, with 10 members voting in favor and 2 against. The policy statement did not signal an urgent need for rate cuts. Powell said that the economic growth outlook has improved compared to before, and the risks to inflation and employment have eased, with the Fed "in a favorable position" to assess when another rate cut may be needed. The market reaction was relatively calm, with major U.S. stock indices slightly declining and then largely持平, the 10-year U.S. Treasury yield rising to about 4.25%, and the 2-year yield rising to about 3.58%. Futures prices now bet on the next rate cut being expected at the meeting on June 16-17. However, the press conference shifted focus to the independence of the Federal Reserve. In the face of pressure from the Trump administration to cut rates and threatening remarks regarding criminal charges, Powell emphasized that the Fed would maintain its independent operations and gave a warning to his successor: "Don't get involved in election politics." He said he and his colleagues were firm in this stance.
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Original article: toutiao.com/article/1855630048904393/
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