Recently, Fed Chairman Powell expressed important views on the current economic situation. He pointed out that although inflation has eased compared to 2022, it remains at a high level. The core Personal Consumption Expenditures (PCE) year-on-year growth in June is expected to reach 2.7%, a figure that is still well above the Fed's inflation target.

Powell emphasized that despite the current severe inflation situation, most long-term inflation expectation indicators remain aligned with the Fed's targets. This indicates that the market still has confidence in the Fed's ability to control inflation.

It is worth noting that Powell mentioned that tariff policies have put upward pressure on the prices of certain goods. This suggests a complex relationship between trade policy and inflation, which may require policymakers to be more cautious when formulating policies.

Regarding the duration of inflation, Powell expressed uncertainty. He believes that inflation may be temporary, but does not rule out the possibility of it lasting longer. This cautious attitude suggests that the Fed may continue to remain vigilant and be ready to take necessary measures to maintain price stability.

Powell's remarks reflect the Fed's attitude in facing the current economic challenges: it is necessary to acknowledge inflationary pressures while maintaining flexibility in policy. This is of significant reference value for understanding the future direction of U.S. monetary policy.