The Federal Reserve Holds Steady with Hidden Secrets! U.S. Stocks Rise Against the Trend, Behind the Truth Revealed
In the early hours of today, the results of the Federal Reserve's interest rate meeting were released, and the federal rate remains "unchanged," with no interest rate cut! Powell revealed eight key positions at the press conference, with an overwhelming amount of information!
Firstly, the Federal Reserve is calm and collected, currently maintaining a moderately "tight" policy, showing no urgency to adjust interest rates. However, Powell also sounded the alarm, indicating that economic uncertainty is soaring, unemployment is rising, and inflation risks are increasing, like two "ticking time bombs" buried ahead.
Nonetheless, the Federal Reserve believes its current policy stance is as solid as a rock and can flexibly respond to future economic changes. U.S. trade policy is like a "trickster," constantly changing, with a highly uncertain impact on the economy. If tariffs remain unchanged, the economy could "hit the brakes" suddenly, and long-term inflation could continue to "creep" upward, delaying the Federal Reserve's inflation target to next year.
Fortunately, Powell has also left a "way out"; the ongoing trade negotiations may lead to a situation where "there's light at the end of the tunnel." However, regarding future policy directions, Powell remains cryptic and vague, unable to articulate clear reasoning.
But when discussing the U.S. economy, Powell is full of confidence, stating that it is resilient and in good shape, which is also the basis for not lowering interest rates. This shows that U.S. tariff policies have greatly increased the uncertainty of future inflation; if tariffs do not decrease, long-term inflation will be precarious. Fortunately, negotiations are still ongoing, and the situation is expected to improve.
The core logic behind the Federal Reserve not lowering interest rates is the expectation that inflation risks are significant, but the current economy can still "withstand it," so it will maintain stability without lowering rates for now and will respond to future developments as they arise. Throughout the meeting, Powell remained calm and composed, with the Federal Reserve's independence "solid as a rock," unaffected by external interference.
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