US Fed Clearly Indicates No Immediate Interest Rate Cut, Spot Market Transactions Remain Active [SMM Tin Morning Brief]
The US Fed has made it clear that it will not cut interest rates for the time being. Previously, when US stocks plummeted, Trump repeatedly hoped that the US Fed would cut interest rates, but the latest speech by Fed Chairman Powell poured cold water on the market. Powell once again emphasized that the US Fed will focus on preventing tariff-driven price increases from evolving into more persistent inflation. This statement reinforced the signal that Powell has repeatedly highlighted: the US Fed is in no hurry to adjust the benchmark policy rate. On that day, Powell issued a strong warning about the inflationary effects of President Trump's trade policies. He stated that Trump's tariffs are "very likely" to stimulate a temporary rise in inflation and warned that these effects could last for a long time. Powell said that the US faces a highly uncertain outlook, with significant risks of rising unemployment and inflation. The US Fed will assess the potential impacts of changes in government policies, observe economic behavior, and formulate monetary policy in a way that best achieves the Fed's mission objectives. Powell stated that it is difficult to assess the potential economic impacts of tariff increases until there is greater certainty. However, the magnitude of the tariff hikes is clearly far beyond expectations, and the economic impacts may be the same, including rising inflation and slowing economic growth. The scale and duration of these effects remain uncertain. Powell said that on the issue of tariffs, it is "too early" to adjust monetary policy. Spot market: Yesterday, the spot market remained active. Most traders reported that yesterday's transactions remained at around two trucks, with downstream and end-user customers showing interest in inquiries.
