🔥FED meeting results:
Keeping interest rates unchanged as predicted, waiting for more economic data (employment, inflation) before deciding to cut.
Current policy stance: Still slightly tight, in line with the resilient US economy.
The FED remains flexible, ready to respond if there are unexpected changes.
📌 Inflation & tariffs:
Tariffs are just beginning to affect prices, but more time is needed to assess the long-term impact. The FED warns that if tariffs persist, they may cause persistent inflation.
Goal: Maintain stable long-term inflation expectations.
📌 Rare internal disagreements:
2 FED members (Bowman & Waller) voted against keeping interest rates unchanged, leaning towards early cuts.
This is the first time in over 30 years that more than one member has disagreed in a policy meeting.
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Do you know the reason for the internal disagreements? Because in May next year, Powell's term will end, and the new FED chairman will be appointed by the president, so those FED members who want to become the current chair will tend to be inclined to lower interest rates, support Trump, and oppose Powell.
Whether rates will be cut in September is unclear, but it is not too important because as we get closer to the end of the term, Powell's voice will have less influence, especially if Trump nominates the next candidate for the FED chair position soon.
Keeping interest rates unchanged and prolonged as they are currently is not too bad, because if everything continues as in previous recessions, the period of strong rate cuts is when financial markets are already in a downtrend. This time, it is also possible that we have to wait until Powell's term ends (May next year), and the new chairman will start lowering rates quickly and aggressively. At that time, markets including crypto will have entered a downtrend, which aligns with the cycle factor.
You all shouldn't worry too much about macroeconomic issues, just keep an eye on them and avoid strong volatility that sweeps liquidity. Because if you can win just by looking at the macro economy, then there's no need for technical analysis. From many years of experience in my market, those who only analyze the macro economy to trade usually end up losing; it sounds reasonable but in reality, it doesn't work.
Regardless of whether interest rates rise or fall, whether the economy is in recession, or whether there is war or not, the reality remains:
- $BTC only has 21 million coins
- More and more countries, companies, and organizations want to hold BTC (and currently including $ETH , $SOL ,...)
- Mining costs are increasingly rising over time and will double every 4 years halving.
- The crypto market is increasingly developing, accepted and participated in by many countries and investors.
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