In this meeting, I personally feel that Powell is playing a "Yin-Yang" game with Trump. First, the downside risk to labor data could lead to an economic slowdown, mainly due to immigration, which everyone knows has been one of the most actively pursued policies by Trump since taking office, aside from tariffs. Secondly, it is believed that without tariffs, the Federal Reserve would have already entered a full-rate-cutting cycle. It is the tariffs that have caused a new round of inflation. Without tariffs, current inflation would be very close to 2%. Of course, Powell also believes that if tariffs no longer cause issues, by mid-2026 we might see the impact of tariffs on inflation peak, meaning inflation should start to decline.

There isn't much else to note. Powell remains very rational, and his statements are within expected templates. He still aims to keep inflation at 2% without wavering, using data to determine the next interest rate adjustment, without making any forecasts. However, Powell did briefly mention a warning regarding the successor to the Federal Reserve Chair, advising not to involve elections and politics, and to maintain the independence of the Fed.

Overall, this meeting has little impact on the market.

A pullback to around 2952-2918 can be used to add long positions, and around 2872 for additional positions. The rebound target can be set between 3025-3090.