The chairman of the Federal Reserve (FED), Jerome Powell, clearly stated in his speech yesterday that there will be no interest rate cuts in July, and September may be a more appropriate time. He mentioned that if it weren't for the recent tariff policies introduced by the Trump administration exacerbating inflationary pressures, the Federal Reserve (FED) might have started cutting interest rates back in June.

This statement has attracted widespread attention from the market, and Trump subsequently publicly criticized Powell, even threatening to replace the Chairman of The Federal Reserve (FED), further increasing the uncertainty of the policy.

As a result, market expectations for interest rate cuts have quickly adjusted. The probability of maintaining the interest rate unchanged in July has risen to 78.3%, while the probability of a rate cut in September has increased to 71.8%. This change indicates that investors have accepted the reality that liquidity will not be significantly loosened in the short term, putting pressure on risk assets.