Fed FOMC statement and key points of Chairman Colin Powell's press conference

[Fed FOMC statement and main points of Chairman Colin Powell's press conference] FOMC statement: The ① Fed announced that it would leave the current target range of 5 to 5.25 per cent of the federal funds rate unchanged, in line with market expectations. According to the ② Fed policy statement, members unanimously agreed on the interest rate decision, leaving rates unchanged so that the FOMC can evaluate more data. The ③ Fed policy statement shows that job growth is strong and the unemployment rate remains low. The ④ Fed policy statement shows that inflation remains high and is highly concerned about the risk of inflation; the banking system is robust and resilient. ⑤ Fed policy statement shows that the rate of reduction in Treasury and MBS holdings will remain the same. Powell made a speech: Almost all ① policy makers agree that further rate increases this year are appropriate and may be justified, but at a more moderate pace. The July meeting will decide whether to raise interest rates on a case-by-case basis. It is not appropriate for the ② to cut interest rates this year, and no policy makers expect a rate cut this year; a rate cut "after two years of discussion" is appropriate when inflation falls. The ③ labour market, which is the engine of the US economy, has unexpectedly shown extraordinary resilience. The ④ Fed's inflation forecasts for the past two years have been "wrong"; core PCE inflation in the US has not made significant progress in the past six months. ⑤ still believes that a soft landing is possible for the US economy, and that a gradual cooling of the strong labor market may help the economy achieve a soft landing.