Powell revealed a dovish tone: interest rates may have reached a peak, and the Fed is paying attention to the liquidity environment

According to Wu Talk, Powell revealed a strong dovish tone at the latest FMOC press conference. First of all, it said that interest rates may have reached a peak, and the Fed will decide when to adjust policy interest rates based on economic data and the need to balance risks; it firmly believes that financial conditions have been tightened enough, and it is expected to start to slow down QT soon. Selectively ignore the resurgence of inflation in January and February, as well as the significant rise in the prices of inflationary assets/risk assets such as crude oil/stocks, and reiterate that inflation is on the way to 2%. At this stage, the Fed is most concerned about the domestic liquidity environment: the risk of "insufficient" liquidity seems to be greater than "excess", especially in a critical election year.