Special topic: the Fed keeps its benchmark interest rate unchanged and slows down the pace of table contraction from June.

From: Wall Street

Just after the endDmarketnftblockchainAt its April FOMC meeting, the Fed stood still as scheduled, keeping interest rates at more than 20-year highs. However, the tone of the policy statement after the meeting is still dovish, suggesting that it is more likely to cut interest rates in the future than to raise them.

New Federal Reserve News Agency, reporter Nick Timiraos wrote that the current market recognition of the Fed's tendency has been less important, the more important is the economic and inflation data.

There are two views within the Federal Reserve.

Within the Fed, some officials have been worried about keeping interest rates too high for too long, especially at a time when inflation and wage growth are slowing, putting pressure on the economy.

Keeping interest rates at their highest level in 20 years for a longer period of time could put more pressure on regional banks, commercial real estate investors and other sectors that are particularly vulnerable before rapid interest rate hikes over the past two years.

Another camp believes that there is little need to cut interest rates this year because of the strong economy. They worry that when the Fed sets its inflation target at 2%, inflation may stay well above 2%.Dmarketnftblockchain.5% level. Before considering cutting interest rates, these officials want more evidence that the economy is slowing.

The latest data provide for the latter.DmarketnftblockchainIncreased support and increased the likelihood that officials will wait for more evidence of an economic slowdown before cutting interest rates.

Inflation figures mean everything.

Nick Timiraos stressed that a series of disappointing inflation and wage data released this year have led investors to focus less on the Fed's policy outlook and more on inflation data.

Neil Dutta, director of economic research at Renaissance Macro research, told the media:

Powell can say anything he wants, but in the end the inflation data will decide everything.

William English, a former senior adviser to the Fed, believes that if inflation continues to exceed expectations, the Fed may need to reverse its dovish tone and leave more room to raise interest rates.

Powell also stressed at a news conference on Wednesday that current interest rates are still sufficiently restrictive. Powell cited a number of signs that interest rates are dampening demand, including a slowdown in employment and a decline in turnover, and inflation will eventually fall, in part because the falling effect of rental prices is not yet fully reflected in the official data.

He said the Fed was unlikely to resume raising interest rates, but added that the exact course of action depended on the data:

As far as peak interest rates are concerned, I think. The data must answer this question for us.

Some analysts pointed out that at present, interest rate-sensitive economic sectors such as real estate and manufacturing in the United States may have withstood the impact of the Fed's interest rate policy, thus creating the risk that tight labor markets will lead to another acceleration of economic growth and a rebound in inflation.

If inflation stays around 3 per cent, the Fed could face a series of trickier conversations, said Diane Swonk, chief economist at KPMG. She expected some Fed officials to continue tightening under such circumstances, although "this is not what Powell wants".

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