Odaily Planet Daily News At the start of the Federal Reserve's two-day meeting, investors have accepted the fact that the Fed may not cut interest rates this time. But at a time when the stock market is at a vulnerable point, what they are looking for is any signal from Fed Chairman Powell about the direction of inflation.
John Belton, portfolio manager of Gabelli Funds, said, "Powell's tone on inflation is crucial to Wall Street because traders need to hear that price pressures are continuing to ease, and there is obviously a potential black swan."
Swap contracts show that traders expect the Fed to pause rate cuts, but they are not sure how long they will pause. This is why the tone of Powell's speech at the press conference after the interest rate decision on Wednesday afternoon local time is worth paying attention to. If he shows anything other than caution and reluctance to commit, it will not be consistent with his character, but Wall Street professionals will listen to anything in his wording or tone that indicates his thoughts. (Jinshi)