Breaking News! Tonight Powell's words will determine the market, will it rise or fall?
Tonight the Federal Reserve's interest rate decision will be revealed, and Powell has become the key figure holding the "power of life and death"! The market is watching him closely, wondering whether he will inject liquidity to save the market or impose a "strangulation" regulation on areas like cryptocurrency, all depending on the tone of his speech. That guy Trump is also joining in, shouting that the Federal Reserve needs to cut rates by 200 basis points, it’s simply crazy!
In fact, at 2 AM tonight, the Federal Reserve will announce its interest rate decision, and it is highly likely that there will be no rate cut, as the market has already prepared for this. But what can truly stir the waters of the market is Powell's speech after the decision.
If Powell emphasizes controlling inflation and hints at possible rate hikes in the future, it would be a major negative for the market. Why? Because rate hikes mean tightening liquidity, leading to less money in the market, which would impact investment and consumption.
However, if Powell leans towards stimulating the economy and suggests the possibility of rate cuts in the future, it would be a huge positive for the market. Rate cuts mean expectations of loosened liquidity, more money in the market, and increased investment and consumption, which everyone would naturally welcome.
Trump's call for rate cuts also represents a portion of people's hopes for a loose policy. But whether the Federal Reserve will listen to him depends on what Powell says tonight. In any case, let’s wait and see for this grand performance tonight!
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