Powell Leads Central Bank Presidents' Discussion, Financial Markets Set to Stir

Tonight at 21:30, global attention is focused on the European Central Bank's Central Bank Forum, where Federal Reserve Chairman Jerome Powell will lead a group discussion with the heads of major central banks. This discussion is sure to create waves in the financial markets.

From an external perspective, Trump's continued pressure has put the Federal Reserve's decision-making under scrutiny. Trump has repeatedly called for the Federal Reserve to cut interest rates, posing a challenge to Powell and the Fed's independence. Internally, there is also a clear division of opinion regarding the rate cut issue. Some officials are concerned about an economic slowdown and lean towards cutting rates to stimulate the economy; however, others worry that a rate cut could trigger inflation and have long-term negative effects on the economy.

In this context, Powell's statements will be crucial. If he signals a dovish stance during the discussion, suggesting a potential rate cut in the future, the stock market may see a surge, increasing investors' risk appetite, and more funds will flow into the stock market. Meanwhile, the appeal of safe-haven assets like gold may decline, putting pressure on prices. As for the cryptocurrency market, mainstream cryptocurrencies like Bitcoin may attract some funds due to their decentralized nature and potential value preservation function, appealing to those seeking diversified investments.

Conversely, if Powell takes a hawkish stance, emphasizing the maintenance of current monetary policy or tightening it, the dollar may strengthen, and funds may flow back into dollar assets, putting pressure on emerging markets and risk assets. The stock market may experience a correction, while gold, as a safe-haven asset, is likely to receive some price support. The cryptocurrency market may face short-term adjustments due to capital outflows.

Discussions on monetary policy during this forum and Powell's responses to key issues will profoundly influence the direction of global financial markets, whether in the stock market, foreign exchange market, commodity market, or the emerging cryptocurrency market. All will experience new trend changes under the impact of this event, and investors should closely monitor and prepare for responses.