The Federal Reserve's recent performance can be described as making market investors sit idly by. Previously, the market's expectations for the Fed to cut interest rates were heating up, and I was hopeful that the easing policy would inject a strong shot into the market. However, the current situation has taken a dramatic turn. A number of Federal Reserve officials have taken a stand one after another, making tough statements that they will not easily cater to the market's eagerness to cut interest rates.
Among them, Chicago President Goolsblee's attitude shift is the most significant. In an interview with FoxNews last Thursday, she firmly emphasized:
The Federal Reserve's decisions are based solely on economic data, and will never be influenced by the political turmoil of the general election. It claims that the Federal Reserve's mission has always revolved around maximizing employment and stabilizing prices, and any external factors that attempt to influence its decisions will be resolutely rejected.
This remark was like a bombshell. It instantly caused an uproar in the market. It was keenly interpreted by the market as a tough signal, causing a sharp shock in the early trading market.
Meanwhile, the Kansas City Co-Chairman also expressed his views. Although he was encouraged by the recent data on the decline in inflation, he also cautioned that there is still some distance from the established inflation target. Furthermore, the conversation took a turn, stressing that the current economic situation has not yet fully reached the urgency of cutting interest rates. This certainly threw cold water on investors who are eagerly awaiting interest rate cuts.
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