CICC: Powell's speech should not be seen as the starting point for monetary easing

ChainCatcher news, according to Jin10 reports, the China International Capital Corporation (CICC) research report pointed out that Federal Reserve Chairman Powell's speech at the Jackson Hole meeting was interpreted by the market as a "dovish" signal, but did not provide guidance on the persistence and magnitude of interest rate cuts. CICC believes that Powell's remarks clarify the Federal Reserve's "reaction function," which tends to lower interest rates when employment risks outweigh inflation. However, under the current high tariffs and tightened immigration policies, both employment and inflation risks coexist, and Powell may stop cutting rates when inflation risks surpass employment. The market should recognize the challenges facing monetary policy, and risk appetite may decline, leading to increased volatility.