Fed Chairman discusses interest rate cuts unrelated to the presidential election. China's Central Political Bureau meeting focuses on comprehensive monetary policy tools. Stay informed on the latest developments in the US economy and China's economic policies.
Sources:
https://www.thepaper.cn/newsDetail_forward_28268397
https://finance.sina.cn/2024-07-30/detail-incfxkzz9944862.d.html
https://finance.sina.cn/futuremarket/qszx/2024-08-01/detail-inchcaah3059163.d.html
https://finance.sina.cn/futuremarket/qszx/2024-08-01/detail-inchcaah3059163.d.html
Outline:
(00:00:00) Introduction
(00:00:49) Fed Chairman: Interest rate cuts may be discussed in September and have nothing to do with the presidential election, and the Fed will stay out of political disputes
(00:02:19) The Central Political Bureau meeting mentioned the "Comprehensive Application of Multi -Monetary Policy Tools" experts: not ruled out that the policy interest rates in the fourth quarter may drop again
(00:04:14) 【Hot Report】Boost Consumption and Prevent Involution Competition--Key Interpretation of the 730 Politburo Meeting
(00:05:43) 【Hot Report】Boost Consumption and Prevent Involution Competition--Key Interpretation of the 730 Politburo Meeting
Simply Politics, from China
Fed Chairman Addresses Interest Rate Cuts, China’s Monetary Policy Meeting
Fed Chairman discusses interest rate cuts unrelated to the presidential election. China's Central Political Bureau meeting focuses on comprehensive monetary policy tools. Stay informed on the latest developments in the US economy and China's economic policies.Sources:https://www.thepaper.cn/newsDetail_forward_28268397https://finance.sina.cn/2024-07-30/detail-incfxkzz9944862.d.htmlhttps://finance.sina.cn/futuremarket/qszx/2024-08-01/detail-inchcaah3059163.d.htmlhttps://finance.sina.cn/futuremarket/qszx/2024-08-01/detail-inchcaah3059163.d.htmlOutline:(00:00:00) Introduction(00:00:49) Fed Chairman: Interest rate cuts may be discussed in September and have nothing to do with the presidential election, and the Fed will stay out of political disputes(00:02:19) The Central Political Bureau meeting mentioned the "Comprehensive Application of Multi -Monetary Policy Tools" experts: not ruled out that the policy interest rates in the fourth quarter may drop again(00:04:14) 【Hot Report】Boost Consumption and Prevent Involution Competition--Key Interpretation of the 730 Politburo Meeting(00:05:43) 【Hot Report】Boost Consumption and Prevent Involution Competition--Key Interpretation of the 730 Politburo Meeting
- Duration:
- 7m
- Broadcast on:
- 01 Aug 2024
- Audio Format:
- mp3
Good morning, and welcome to Simply Politics from China. It's Thursday, August 1st. On today's show, the Fed Chairman discusses the possibility of interest rate cuts in September, emphasizing that it has nothing to do with the presidential election and assures that the Fed will stay out of political disputes. Plus, experts suggest that policy interest rates in the fourth quarter may drop again, as discussed in the Central Political Bureau meeting. This coverage, and more, up next. I'm David, and you're listening to Simply Politics from China. We start off with the Federal Reserve's July interest rate statement, keeping the target range for the federal funds rate at 5.25 to 5.5 percent, the highest level in 22 years. This is in line with market expectations. However, the focus seems to be on the potential rate cut that may be discussed in September, and it's possible connection to the upcoming presidential election. Here to discuss this further is Abi, a correspondent for Simply Politics from China. Can you shed some light on this? Certainly, David. The Fed Chairman Powell has made it clear that any discussion of a rate cut in September is unrelated to the presidential election. He emphasized that if the central bank were to cut rates, it would be absolutely unrelated to politics. He also stated that the central bank's economic forecasts do not consider who will win the presidential election, nor will it ever attempt to make policy decisions based on election results that have not yet occurred. So the Federal Reserve is making a point to stay out of political disputes. Exactly. Powell emphasized that the Federal Reserve will stay out of political disputes. He stated that the Fed has no way to address other factors, such as political schedules, and has never tried to support or oppose a political party, a politician, or any political outcome. And when is the U.S. presidential election? The U.S. presidential election will be held in November this year. It will be interesting to see how this plays out. Thanks for the report, Abby. Shifting gears now, the political bureau of the CPC Central Committee recently held a meeting to analyze the current economic situation and plan for economic work in the second half of the year. The meeting highlighted the need to use a variety of monetary policy tools to increase financial support for the real economy and promote a stable and slight decrease in the overall cost of social financing. Here to discuss this further is Bella, a correspondent for Simply Politics from China. Can you tell us more about the implications of this meeting? Certainly, David. The meeting emphasized the need to comprehensively use a variety of monetary policy tools. This implies that the policy means will be both diversified and flexible. According to the economic operation situation, the reserve requirement ratio, open market operations and various structural tools will be used comprehensively to ensure that the support for the real economy is not reduced. And what does this mean for areas such as science and technology, innovation, green development, and inclusive finance? Active measures will also be taken to increase support for these areas. The aim is to optimize the credit structure, improve the efficiency of capital use, and effectively support the development of key areas and weak links. This is part of a broader strategy to maintain the basic stability of the RMB exchange rate at a reasonable and balanced level. Could this lead to further policy rate cuts in the fourth quarter? That's a possibility. The emphasis on the comprehensive use of various monetary policy tools does not rule out the possibility of further policy rate cuts in the fourth quarter. This will depend on the economic situation and the effectiveness of the measures implemented. Thanks for that report, Bella. Shifting gears, the July 30th Politburo meeting has sparked discussions on boosting consumption and preventing evolutionary competition. The meeting highlighted the ongoing economic structural transformation and the need for proactive responses. Here to discuss this further is Michael, a correspondent for Simply Politics from China. Can you tell us more about the key points from this meeting? Certainly David, the meeting acknowledged the various difficulties currently faced by the domestic economy, but it emphasized that these are problems in development and transformation, not a simple economic downturn. The meeting stressed the need for active and proactive responses while maintaining strategic determination. This suggests that the economic structural transformation is still ongoing, and the domestic economic regulation and control methods are gradually moving away from the traditional path dependence. What does this mean for the traditional methods of expanding debt and investment to stabilize the economy? The meeting indicated that these traditional methods will gradually fade out of the policy toolbox. Instead of stimulating and stabilizing the economy through short term intensive measures, the focus will be on enduring the pain of the transformation period for a longer time. This is part of a broader strategy to boost consumption and prevent evolutionary competition. Thanks for that report, Michael. Shifting our focus, the July 30th Politburo meeting has sparked discussions on boosting consumption and preventing "involution competition." The meeting highlighted the ongoing economic structural transformation and the need for proactive responses. Here to discuss this further is Celeste, a correspondent for Simply Politics from China. Can you tell us more about the key points from this meeting? Certainly, David. The meeting acknowledged the various difficulties currently faced by the domestic economy, but it emphasized that these are problems in development and transformation, not a simple economic downturn. The meeting stressed the need for active and proactive responses while maintaining strategic focus. This suggests that the economic structural transformation is still ongoing and the domestic economic regulation methods are gradually moving away from the traditional path dependence. What does this mean for the traditional methods of expanding debt and investment to stabilize the economy? The meeting indicated that these traditional methods will gradually fade out of the policy toolbox. Instead of heavily stimulating and stabilizing the economy through short term increases, the focus will be on enduring the pain of the transformation period for a longer time. This is part of a broader strategy to boost consumption and prevent "involution competition." Thanks for that report Celeste. It's certainly a significant shift. And with that, we wrap up our stories for today. Thanks for listening to Simply Politics from China. We'll see you back here tomorrow. [MUSIC] [BLANK_AUDIO]