Analyst: Focus Shifts to How Powell Will Respond to Internal Divisions

According to Jinse Finance, analyst Jersey stated that it is not surprising that two Federal Reserve officials cast dissenting votes, and the change in the statement’s wording from “solid expansion” to “moderate slowdown” in economic growth is also in line with our expectations. Powell’s press conference may pave the way for a rate cut in September, which could lead to a slight downward revision in the median rate forecast in the dot plot. If such signals are released, short-term yields are likely to fall back to recent lows. In the upcoming press conference, Powell will inevitably be asked whether the two dissenting votes indicate that more committee members are shifting to a dovish stance. The key point to watch is whether he will proactively mention this divergence in his opening remarks and how he will characterize this policy split.