Powell's Shocking Speech: Inflation Persists! Rate Cuts Are Far Off! Market Trembles 🔥
Powell just announced: "Rate cuts? It's not the time yet!" He revealed that the Federal Reserve will maintain a high interest rate of 4.25%-4.5%! Why? Inflation is still rampant, and rate cuts are out of reach.
📉 Why not cut rates?
High inflation: The Federal Reserve wants to wait until inflation is clearly under control before taking action.
Trump's tariffs: New tariffs may delay rate cuts by a year, and rising prices will force the Federal Reserve to continue with high interest rates.
🚨 Economic recession? Don't panic!
GDP decline: Although GDP fell by 0.3% in the first quarter, Powell believes "the economy remains strong," hence rate cuts are not being considered.
💥 Market reaction:
High interest rates suppress liquidity, which is unfavorable for growth assets like cryptocurrencies and tech stocks.
Tariffs will make inflation difficult to resolve for a long time, potentially benefiting gold and oil.
A strong dollar may put Bitcoin and other cryptocurrencies in a tough spot.
Increased volatility, be prepared for significant market fluctuations.
🎯 Conclusion
Powell's remarks will extend the bear market! The fight against inflation continues, and don’t expect rate cuts to rescue us in the short term. Strategy:
Spot: Be patient and wait for a pullback before acting.
Futures: Manage risks and prepare for volatility.
Long-term investment: Defensive assets, such as gold and energy.