$BTC In the early morning, the Federal Reserve dropped four “financial nuclear bombs,” instantly changing the global market!
The Federal Reserve's June meeting kept interest rates unchanged but issued four heavy warnings in quick succession, shattering market fantasies. The S&P 500 Index was initially strong, briefly breaking the historical barrier of 6000 points, only to be doused with cold water by the Federal Reserve, ultimately falling below key psychological levels, with market sentiment reversing instantly!
Warning 1: The inflation bomb has been activated, the Federal Reserve rarely acknowledges the “tariff disaster.”
Federal Reserve Chairman Powell has unprecedentedly pointed out that tariffs are driving up inflation and warned that price pressures will persist! Historically, the Federal Reserve avoided discussing tariffs, but this time they came clean: “The cost of tariffs is ultimately borne by consumers!” This means that US prices may further surge in the coming months, significantly compressing the Federal Reserve's space for interest rate cuts.
Warning 2: Rate cut expectations are “halved,” internal division within the Federal Reserve intensifies
The official dot plot still shows two rate cuts this year, but the number of rate cuts in 2026 has been halved (only once)!
More frighteningly, the number of officials believing there will be no rate cuts this year has surged from 4 to 7, with hawkish forces rising!
The market is completely confused: will there be two rate cuts, or simply none at all? Even the Federal Reserve is in disarray.
Warning 3: The “stagflation ghost” emerges, the Federal Reserve is in a dilemma.
The latest economic forecast from the Federal Reserve shows:
✅ GDP growth slows (2025 forecast revised down to 1.4%)
✅ Unemployment rate rises (expected to rise to 4.5%)
✅ Stubborn inflation (PCE inflation expectation raised to 3.0%)
The risk of “stagflation” is approaching, and the Federal Reserve's monetary policy is in a deadlock—cutting rates fears uncontrolled inflation, while not cutting rates fears economic recession.
Warning 4: Powell rarely admits uncertainty: “We also don’t know what will happen!”
Faced with the complex situation of “tariffs + geopolitical conflict + inflation,” Powell has come clean:
“Never seen such a combination, extremely difficult to predict!”
This statement is equivalent to telling the market: “Don’t expect the Federal Reserve to save you, fend for yourself!” Investors panicked instantly, and risk-averse sentiment soared to 110.
The market is stirring; how can retail investors fight back?
The Federal Reserve's warnings are no empty talk; the real storm in the market may still be ahead!
✅ Gold and crude oil may become the biggest winners.
Global central banks are frantically hoarding gold (95% of central banks plan to continue increasing their holdings).
Middle East conflict + inflation expectations may lead to another surge in oil prices, driving energy stocks to rise against the trend.
❌ Overvalued tech stocks are in danger!
Nasdaq 100 ETF (QQQ) put options surge, with the market betting on a tech stock crash!
Tesla's stock price has fallen below $300; if the trade war escalates, tech giants may bear the brunt.
🔥 Retail survival rule: Fast, accurate, ruthless!
Never blindly bottom fish: wait for the market to digest the Federal Reserve's signals before taking action.
Pay close attention to gold and energy: under inflation + geopolitical risks, hard assets are safer.
Beware of “stagflation trades”: consumer stocks and growth stocks may be impacted, turning to defensive sectors.
Don’t misuse leverage! The Federal Reserve’s policy swings, high leverage = suicide!
Conclusion: The Federal Reserve has drawn its sword, and the market drama has just begun!
This meeting proves that the Federal Reserve will no longer provide support, but rather let the market fend for itself. Stagflation risk + policy divergence + geopolitical crisis will inevitably lead to turmoil in the second half of 2025! Retail investors must either strike precisely or observe thoroughly, or they risk becoming the next batch of harvested chives!
The market changes daily; you need to seize the right moment to act. If you are still too confused, you can follow me, as I often share cutting-edge news and practical strategies. Feel free to come discuss and seize great opportunities together!
