The Federal Reserve's change of stance, is the era of money printing coming to an end? Powell's decision is too harsh!

The Federal Reserve may really be serious this time. Powell's latest speech sends a strong signal: they are reassessing the massive monetary easing policy that has been in place since 2020. In other words, the era of 'money falling from the sky' is likely coming to an end.

The harshest part is that—now inflation has dropped below 3%, and under previous patterns, they would have already begun to ease.

But this time, the Federal Reserve is holding firm, and everyone is just using 'continue to observe' as an excuse. The economy is clearly recovering, yet their monetary policy is tighter than anyone else's, directly stepping on the gas in reverse operation, which seems unusual.

Things are probably not that simple.

The Federal Reserve may no longer focus solely on the '2% inflation' target, but rather shift attention to asset market fluctuations, and they may even be secretly formulating entirely new rules of the game. The aggressive money printing and stimulus approach during the pandemic suddenly seems to have calmed down. Not only are they not increasing the pace, but they also want to erase the old money printing trajectory.

Is this psychological warfare, a smokescreen, or a complete pivot? No one can be certain.

But one thing is certain: the market landscape is changing, and the past strategy of profiting from easing is facing its end. Investors must rethink their strategies and adapt to a new round of competition.