Powell hints that the Fed will extend the time of interest rate cuts, and central banks around the world are in a dilemma

According to Jinshi, Federal Reserve Chairman Powell hinted on April 16 that the Fed will wait longer than expected before cutting interest rates, marking his policy shift since December last year. This policy shift has put central bank governors attending the spring meetings of the International Monetary Fund (IMF) and the World Bank in a dilemma. If the European Central Bank, the Bank of England and the Reserve Bank of Australia start to relax policies on their own regardless of the US policy shift, it may lead to the depreciation of their currencies, push up import prices and undermine the process of reducing inflation. However, if the policy is not relaxed, it may jeopardize economic growth.