[Hot News Review] Federal Reserve Chairman Powell stated that interest rate cuts will only be made when ready, without considering political factors;

① Federal Reserve Chairman Powell said on Wednesday that the Fed will make interest rate decisions "when needed", downplaying the implication that the September rate cut may be seen as political action before the autumn presidential election.

② "Our commitment is to make decisions based on data, future data, constantly changing prospects, and risk balance when necessary, rather than considering other factors, including political factors," Powell said at a hearing held by the House Financial Services Committee. "We have been doing this for a long time, including in election years, and this is the promise we will make... Everything we do will have sufficient basis. For us, considering the election cycle is not appropriate, no matter what."

③ Powell made the above statement in response to a question from Republican Congressman Mike Lawler in New York State. Lawler's question is whether the September interest rate cut will be seen as an attempt to tilt the competitive environment before the November 5th election. Currently, investors believe that the likelihood of a rate cut in September is about 70%.

④ Lawler asked, "Since you mentioned the independence of the Federal Reserve, and I know you take pride in this independence, do you acknowledge or do the members of the Federal Open Market Committee acknowledge that the September rate cut may be seen as political just 30 to 60 days before the election?"

⑤ This is Powell's second consecutive day of detailed discussion on the independence of the Federal Reserve at the semi annual congressional hearing on economic and monetary policy. Powell often promotes this concept, with support from members of both houses of Congress, but independence remains a central topic as the Federal Reserve approaches a decision to cut interest rates.

⑥ Powell has been testifying in the Senate and House of Representatives committees responsible for overseeing the Federal Reserve for the past two days. He hinted that the Federal Reserve was gradually approaching a decision to cut interest rates, while also insisting that he was not ready to announce that inflation had been defeated. "I do have some confidence in this," Powell said when asked directly if he thought the obstacles to interest rate cuts had been cleared, but "I'm not ready to say that yet.".

⑦ However, Powell told lawmakers that recent data is encouraging, emphasizing that job market risks are now balanced with high inflation risks - the Federal Reserve's policy task is to achieve the dual goals of price stability and full employment. "There is a path to maintaining low unemployment while restoring comprehensive price stability," Powell said. "We are on this path. We are very focused on continuing on this path."

⑧ Powell stated that the United States is seeing "good data" from sustained economic growth, 4.1% unemployment rate to declining inflation