Fed officials suddenly make strong statements: The tariff war may ruin interest rate cuts! Is the market going to change?
"With the tariff stick swung, is the dream of interest rate cuts shattered? Fed officials issue urgent warning!"
Brothers, the Fed's big shot Goolsbee just dropped a bomb! He said that the U.S. tariffs on China may delay interest rate cuts! Simply put: The Biden administration's crazy tariffs on Chinese electric vehicles, chips, and batteries may prevent U.S. inflation from decreasing, forcing the Fed to maintain high interest rates—interest rate cuts? Maybe wait a bit longer!
Zhuque's view:
Why do tariffs affect interest rate cuts?
Increasing tariffs = rising prices for imported goods = rebound in U.S. domestic inflation → The Fed dares not easily cut interest rates.
Historical case: In 2018, Trump imposed tariffs on China, and U.S. CPI soared to 3%, forcing the Fed to raise interest rates.
Impact on the market:
Negative for U.S. stocks: Continued high interest rates, tech stocks under great pressure.
Positive for the dollar: The dollar may continue to be strong, and emerging market currencies will suffer.
Bitcoin may become a winner: If the market panics, funds may rush into cryptocurrency for safety!
Key data:
Current Fed interest rate: 5.25%-5.5%
The market originally expected a rate cut in September, but it may now be delayed until December or even next year! Risk warning:
If interest rate cuts are delayed, global liquidity will continue to tighten, and high-risk assets may plummet!
Operation suggestion:
Short-term: Avoid overvalued U.S. stocks, focus on safe-haven assets like gold and BTC.
Long-term: Keep an eye on U.S. CPI data; if inflation cools down, the expectation for interest rate cuts will be reignited! Are you trapped?
When to bottom fish? It's still the same: feeling lost and helpless about what to do, tap the avatar to follow. I need fans, you need references.
