Traders cut their bets on the overall size of the Fed's rate cuts after Fed Chairman Jerome Powell's speech

Mars Finance News, October 1, Federal Reserve Chairman Powell still believes that the U.S. economy will achieve a soft landing. Powell said on Monday that the interest rate cut process will be further "readjusted" based on the upcoming economic data. He said: "By appropriately adjusting our policy stance, the labor market can remain resilient in an environment of moderate economic growth and continued decline in inflation toward target. Overall, the economy is in good shape, and we intend to use our tools to maintain this situation."

Powell said that if the economy continues on its current track, he expects two more 25 basis point rate cuts this year, and the market has been betting on a more aggressive rate cut cycle. The labor market remains solid, but "it has indeed cooled." He does not think the labor market needs to cool further. Policy lags must be considered in interest rate decisions. The Fed is adjusting policy to maintain a strong economy, not because of a weak economy. The Fed made the right decision in maintaining high interest rates, hoping to ensure that inflation will fall. The half-point rate cut in September reflects confidence in the return of inflation to 2%. "After Fed Chairman Powell's speech, traders lowered their bets on the overall extent of the Fed's rate cuts. (Jinshi)