Former St. Louis Fed President Bullard, known in the community as the 'King of Hawks', suddenly changed his tune! Today he openly stated, 'Current interest rates are already too high, and they could drop by 100 basis points by 2026.'
What does this mean? It suggests that the current cycle of interest rate hikes in the U.S. has likely peaked, and the cost of borrowing will decrease in the next two years!
Note that he specifically mentioned the need to 'maintain the dollar's reserve status', indicating that the Fed's decision to cut interest rates is not only based on inflation, but also on preserving the dollar's hegemony. For us, the most direct impact might be: companies borrowing U.S. debt will face less pressure, and those buying gold may hesitate more due to expectations of dollar depreciation, but will our assets in RMB benefit from this? Especially for real estate companies and airlines burdened with dollar-denominated debt, they might catch a break?
For our brothers in this circle, this is considered good news, but we still need to see the specific measures for interest rate cuts.
Today's focus: OM SUI SOL FUN BTC
