The FOMC is coming tonight! Powell's words are worth a thousand gold, the September interest rate cut benchmark relies on this!
The core is just two points:
This time will definitely not cut interest rates! We can almost guarantee that the interest rate will remain fixed at this high level.
The focus is on Powell's mouth! Every word he says after the meeting will be magnified and interpreted, and everyone is trying to extract hints about "whether there will be a cut in September" from his words.
Why is it absolutely not cutting interest rates now? The reasons are quite solid:
The mess in the Middle East has driven oil prices up, and the inflation beast is showing a trend that is hard to suppress.
The trade war with China is still not settled, and this uncertainty is still hanging in the air.
Domestic data is also perplexing, with inflation and employment data fluctuating wildly, making it dizzying, and there’s no reliable signal.
The Federal Reserve itself feels it needs to wait and see, such a significant shift cannot be rushed; it requires several months of economic performance observation before making a decision.
Conclusion and reminder:
Tomorrow morning's result: Interest rates holding steady? No doubt about it!
Timing for rate cuts: Don’t expect it anytime soon, the earliest possibility might be in the fall.
Focus intently on Powell's statements! Especially any hints he gives about future policy directions.
Set your alarm for 1 AM tomorrow! The official decision and Powell's press conference will be packed with information, don’t miss it!
If you want to make money, don’t be a lone hero! Follow me, comment to tell me your views, and let’s seize the lucrative opportunities of the bull market together.
