🧠Powell's Ultimate Counterattack: This Is Not an Interest Rate Meeting, It's a Hidden Political Counterstrike
Last week's Federal Reserve meeting seemed calm, but it actually concealed sharp edges. Powell's statement, "Unless there are significant economic issues, there will be no rate cuts," completely shattered the market's fantasies and precisely countered Trump's pressure.
Even more ruthless, he used "tariffs" as a shield, directly turning Trump's new policy into his own excuse for delay—"let's wait and see the impact." This statement can be repeated indefinitely, appearing neutral while firmly keeping the pace of rate cuts in his own hands.
Data is also on his side. The core PCE has risen for three consecutive months, providing a perfect excuse for his "wait a moment." Trump's dilemma is that he must promote a strong economy while urgently demanding rate cuts and creating momentum for the election, which is logically contradictory and gives Powell more room to maneuver.
The market has already reacted—U.S. stocks plummeted, high interest rate expectations continued, and liquidity risk was repriced. But don't rush to escape; this is not merely a hawkish stance, but a scripted confrontation. Powell and Trump appear to be at odds, but they both understand: they cannot let the market collapse.
The key is to understand how they are playing this chess game, rather than being thrown off by in-game fluctuations. Those who stay at the table have the qualification to win.
