People in the crypto space must pay attention to the Federal Reserve in September! Uncle Powell has said: If prices can be stabilized, the interest rate cut accelerator can be stepped on early!
Brothers, I just finished watching Powell's 'testimony' in Congress, and the amount of information was explosive! In simple terms, the Federal Reserve now feels like a conflicted veteran driver, wanting to step on the interest rate cut accelerator but afraid of a flat tire.
Uncle Powell himself said: In fact, the recent economic data is already enough to support them in continuing to cut interest rates! Think about it, what does cutting interest rates mean for us in the crypto space? Liquidity might become looser, and the money might come again! When I saw this, I started calculating which altcoin should be preemptively positioned...
BUT! The bad thing is the pile of 'tariffs' that Trump created! Uncle Powell said this stuff is the current 'roadblock'! Why? Because with increased tariffs, imported goods could become more expensive, and if they get expensive, prices might rise again! The Federal Reserve has worked hard to suppress inflation for two years, and now that it’s showing some effect, what they fear most is that these tariffs will push prices up again. So, Uncle Powell means: September is a key point! They want to wait until then to see if this summer’s prices will be affected by the tariffs.
"If inflation pressure can really be stabilized, then we will cut interest rates 'earlier' rather than 'later!'" — This is Powell's original quote! Brothers, highlight this! The September FOMC meeting is an important observation window where they might 'take action'! Of course, this old fox speaks smoothly, not making any definitive statements, only saying he 'doesn’t want to point to a specific meeting,' but everyone understands the implication; September is crucial!
There’s another important signal: the unemployment rate! Uncle Powell said that if the job market suddenly collapses, they would also step on the interest rate cut accelerator to save the situation. But for now, the employment situation looks okay, so they can still 'hold steady.'
The funniest thing is Trump! Before the hearing, he went all out, blasting Powell on social media as a 'complete idiot' and a 'stubborn fool,' shouting 'Hurry up and lower interest rates! Isn't it enough to raise them again when inflation rises?'... This move made me shake my head; does he really think the Federal Reserve is his personal business? Fortunately, the members of Congress were somewhat clear-headed and didn’t just follow him blindly.
There’s also a lot of debate within the Federal Reserve now! People like Waller and Bowman feel that the impact of tariffs isn’t significant, and prices won’t rise much, so they should cut interest rates by the end of July! They worry that tariffs will just squeeze corporate profits, making the economy collapse and unemployment rise, which would be more troublesome. But more officials are scared, fearing that if they cut rates and prices are pushed up again by tariffs, they’d have to raise rates again, making it look even worse! So they want to see more data from June and July before making a decision.
I've already noted the date of the September FOMC meeting in my little notebook! This could be a key turning point for the market in the second half of the year! Do you want to know right away whether the Federal Reserve's decision is 'rocket fuel' or 'cold water' for BTC and ETH? Hit follow, and in the next issue, we’ll discuss in-depth how to accurately position and hedge for arbitrage in the crypto space during the Federal Reserve's 'conflicted period'! Don’t miss the key signals!
