The eagerly anticipated June FOMC interest rate meeting is finally here. With inflation taking off, one can feel the market's pressure on monetary policy, advancing step by step. When you want to suppress interest rate hike expectations, we expect you to reduce QE; when you want to suppress QE reduction expectations, we turn to see when you will communicate about reducing QE expectations.
When any signals of tightening communicated in advance appear, the market immediately reacts as if the tightening has already started. This forces Powell to deliberately respond appropriately, 'Do not think too far ahead about raising interest rates, the meeting only mentioned QE and did not formally discuss it'.
Although there have been some changes in this meeting, there have been no substantial signals, the so-called "most important" June monetary policy meeting quietly concluded, the September meeting will be more important, and the December meeting will be even more important.
As usual, let's first analyze the key points of the meeting statement changes. There are not many changes in this edition, with the core keywords being "vaccine administration", and both changes are related to the progress of vaccine administration.
Previous statement: This is a new sentence. Evaluation: It subtly implies that vaccine administration will bring about economic recovery, but the phrase "the industry hit hardest by the epidemic remains weak" has been sitting here for a long time and has not changed.
Previous statement: The path to economic recovery is significantly influenced by the development of the epidemic, including the progress of vaccine administration. This constantly evolving public health crisis continues to put pressure on the economy and still poses a threat to economic prospects. Evaluation: It subtly implies that vaccine administration...