Today's Market Focus: Powell States the Fed Will Raise Interest Rates When Necessary

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Chinese Market

1. Three Departments Promote the Implementation of "Recognizing Houses Not Loans" Policy

The Australian recent trend analysisMinistry of Housing and Urban-Rural Development, the People's Bank of China, and the Banking and Insurance Regulatory Commission jointly stated that they are promoting the implementation of the policy measure "recognizing houses not loans" for the purchase of first homes. When a resident family (including the borrower, spouse, and minor children) applies for a loan to purchase commercial housing, if family members do not own a complete set of housing in the locality, regardless of whether they have used loans to purchase housing before, banking financial institutions will execute the housing credit policy for the first home.

2. The Scale of Public Funds Reaches a New High

In July, the scale of money market funds increased by approximately 816 billion yuan, bond funds increased by 1787 billion yuan, and stock funds grew by 1277 billion yuan. Additionally, several financial institutions have increased their holdings in their own funds, with Huatianfu Funds, China AMC, Guosen Securities, Guotai Junan Asset Management, and China Merchants Asset Management among the 27 institutions submitting "increase holding" plans within four days.

3. Plans for Steady Growth in the Petrochemical, Building Materials, Steel, and Non-ferrous Metals Industries Unveiled

The Ministry of Industry and Information Technology and other departments jointly released the "Petrochemical Industry Steady Growth Work Plan," "Building Materials Industry Steady Growth Work Plan," "Steel Industry Steady Growth Work Plan," and "Non-ferrous Metals Industry Steady Growth Work Plan," focusing on the development transformation direction of the four industries. They have outlined the overall requirements, work measures, and safeguard measures for the steady growth of these industries over the next two years.

Overseas Market

1. Powell Indicates the Fed Is Ready to Raise Rates if Necessary

At the Jackson Hole central banking annual meeting, Federal Reserve Chairman Jerome Powell stated that given core inflation, excluding food and energy, remains high, the Fed is prepared to raise interest rates further if necessary. Powell mentioned that if the economic growth prospects and the job market remain strong, the Fed needs to continue its tight monetary policy to prevent a rebound in price pressures.

2. Intense Debate Among Fed Officials on Whether to Raise Rates Again This Year

Philadelphia Fed President Patrick Harker does not believe inflation will accelerate again, stating he wishes to "maintain the status quo and see how things develop," seeing no necessity for further rate hikes and ruling out the possibility of cuts before 2024. Cleveland Fed President Loretta Mester indicated that the Fed is very likely to raise rates again, currently not expecting rate cuts next year.

3. Putin's First Remarks After Prigozhin's Plane Crash

Russian President Vladimir Putin stated that Prigozhin had achieved results not only in Russia but also abroad, especially in Africa. Putin mentioned that an investigation into the plane crash involving Prigozhin had commenced. These comments were Putin's first since the crash.

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