The full text is here! Powell's press conference was quite hawkish, causing a major reversal in assets. What exactly did he say?

On Wednesday, September 18, Federal Reserve Chairman Powell's press conference released a hawkish signal. The US stock market continued to rise briefly after his speech, but then turned downward as signs of trouble emerged, returning to pre-lunchtime lows. The bond market, gold, and forex also experienced a 180-degree reversal. This is mainly because Powell stated that the Federal Reserve is only "moderately adjusting policy stance" and does not have a pre-set policy path. They will continue to make decisions based on economic data at each meeting, with the speed of future rate cuts potentially fast, slow, or even paused. For example, he mentioned several policy combinations: if the economy remains strong with sustained inflation, the Federal Reserve will slow down rate cuts; however, if the labor market unexpectedly weakens, or inflation falls faster than expected, they are prepared to implement aggressive rate cuts. Overall, Powell intends to dispel market speculation of "50 basis point rate cuts becoming the new norm." The following is the full text of his remarks before the media Q&A session: Good afternoon, my colleagues and I remain squarely focused on achieving our dual mandate goals of maximum employment and stable prices for the benefit of the American people. Our economy is strong overall and has made significant progress toward our goals. Over the past two years, the labor market has cooled from its formerly overheated state. Inflation has eased substantially from a peak of 7% to an estimated 2.2% as of August. We are committed to maintaining our economy's strength by supporting maximum employment and returning inflation to our 2% goal. Today, the Federal Open Market Committee decided to reduce the degree of policy restraint by lowering our policy interest rate by a half percentage point. This decision reflects our growing confidence that with an appropriate recalibration of our policy stance, strength in the labor market can be maintained in a context of moderate growth and inflation moving sustainably down to 2%. We also decided to continue to reduce our securities holdings. I will have more to say about monetary policy after briefly reviewing economic developments. Recent indicators suggest that economic activity has continued to expand at a solid pace. GDP rose at an annual rate of 2.2% in the first half of the year, and available data point to a roughly similar pace of growth this quarter.Consumer spending growth has remained strong, and investment in equipment and intangibles has increased from the low levels seen last year. However, investment in the housing sector declined in the second quarter after a strong increase in the first quarter. The strong performance of the US economy over the past year has been supported by improved supply conditions and resilient demand. Overall, Committee participants expect GDP growth to remain solid, with a median projection of 2% over the next few years.2%The forecast indicates a median of 2% for the year 2026 and beyond.f achieving our dual mandate of maximum employment and stable prices. The Committee will continue to monitor the economic outlook and act as appropriate to sustain the expansion, with a strong emphasis on achieving our price stability objective.An inflation as we start transitioning towards a more neutral stance. positioned to adjust as needed to achieve our dual mandate. Thank you for your attention.We are prepared to handle the risks and uncertainties that come with pursuing both aspects of our dual mandate. The Federal Reserve has been given two objectives for monetary policy: achieving maximum employment and maintaining stable prices. We are dedicated to supporting maximum employment, lowering inflation to our 2% target, and ensuring that long-term inflation expectations remain stable. Our ability to meet these objectives is important for all Americans. We recognize that our decisions impact communities, families, and businesses nationwide. Our every action is aimed at fulfilling our public mission. The Federal Reserve is committed to doing everything possible to achieve our goals of maximum employment and price stability.The policy is ready to address the risks and uncertainties we face in fulfilling our dual mandate. The Federal Reserve has been given two monetary policy goals: to maximize employment and stabilize prices. We remain committed to supporting full employment, lowering the inflation rate to the target of 2%, and maintaining well-anchored long-term inflation expectations. The success of these goals is crucial for all Americans. We understand that our actions will affect communities, households, and businesses across the country. Everything we do is to fulfill our public mission. The Federal Reserve will do its utmost to achieve the goals of maximizing employment and price stability. This article is sourced from "Wall Street News"; GMTEight Editor: Li Fo.