The FED is already signaling that it wants to cut the interest rate "BUT"
Why is this positive for financial markets?
It is positive for stocks, #Bitcoin and #crypto, because cutting the interest rate makes loans cheaper and, therefore, money.
This generates more money in circulation and, therefore, more capital available for investment. Statements that support optimism regarding inflation and the tariff scenario, which could enable cuts in the interest rate.
The next interest rate decision will be on June 18. A cut is not expected, but economic projections will be decisive.
That the FED maintains the projection of two cuts for this year would be a positive signal for financial markets, especially considering that a month ago Powell indicated that there was a possibility that there would be no cuts this year.
"BUT"
Trump threatens with tariffs of 25% on #Apple and #Samsung and CONFIRMS one of 50% on the European Union.
This could affect the FED's decision to cut the interest rate. Let me explain why:
"I am not seeking an agreement with Europe; it is already decided: on June 1, tariffs of 50% will be imposed against the European Union"
What did Trump say for #Bitcoin to drop $4K in 2 hours?
He stated that he will impose tariffs of at least 25% on Apple if iPhones are not manufactured in the U.S.
As a result, $AAPL shares plummeted 4.44% at the market open.
He also said: "I am not seeking an agreement with Europe; it is already decided: on June 1, tariffs of 50% will be imposed against the European Union"
He claims that talks with the EU "are going nowhere".
