#FOMCMeeting The FOMC meeting reinforces a critical principle in volatile markets: monetary policy is a beacon but not an infallible predictor. As an investor, this implies
1. Do not underestimate the power of the Fed's "language." Beyond rates, the tone of post-meeting statements (hawkish/dovish) will define expectations for July or September. Watch for mentions of "patience," "flexibility," or inflationary risks.
2. Inflation vs. employment: a fragile balance. The Fed prioritizes controlling inflation, but a strong labor market reduces urgency for cuts. This could prolong high rates, putting pressure on the indebted (companies, consumers) and interest-sensitive assets (bonds, tech growth).
3. Tariff policies are a wild card. Trump's tariffs could reignite inflationary pressures, limiting the Fed's room to stimulate the economy. Invest in defensive sectors (commodities, utilities) as a hedge.
4. Markets discount, but do not anticipate everything. While markets have already postponed cuts to July, a surprise in inflation data (next CPI) or employment could cause abrupt volatility. Keep liquidity for opportunities.
5. Binance and crypto: correlation with rates. Cryptocurrencies, especially Bitcoin, tend to react to expectations of global liquidity. A more hawkish Fed than expected could limit short-term rallies, but reinforces the appeal of decentralized reserves in the long term.
My recommendation: Trade with tactical caution (short-term), but maintain a strategic vision (long-term). The Fed is in "wait and see" mode, and you should be too.