A major event is coming! At 10 PM tonight, Federal Reserve Chairman Powell will speak—global investors are glued to this live broadcast. 🤯
This time is truly unusual. Powell seems to be walking a tightrope: on one side he has to control inflation, and on the other, he has to protect employment—it's tough!! Even more exciting is that Trump is wildly calling for 'quick rate cuts', essentially putting public pressure on the independence of the central bank. This speech will be a litmus test!
The market is now on edge. August typically has a light trading volume, and even a slight remark could send the market on a rollercoaster ride. Many on Wall Street are guessing whether Powell will signal a dovish stance (which means hinting at a rate cut).
But! Wholesale prices suddenly jumped in July, slapping the faces of those who expected a significant rate cut... Now it's generally believed that there might be two cuts this year, one of 25 basis points.
And there's a drama interruption: Trump directly told Federal Reserve official Cook a few days ago, 'You should resign!' The response was tough: 'I'm not leaving!' 🤬 This operation is clearly aimed at manipulating the central bank...
So this speech is not just about interest rates; it's a declaration moment of 'Is the Federal Reserve independent?' If Powell shows weakness, the market might explode; but if he takes a strong stance, the stock market is likely to shake.
What's even scarier is that some people are starting to fear the monster of 'stagflation'—economic stagnation + persistently high inflation. If it really happens, the retail investors will get hurt again. 😭
Analysts from State Street Investments also said: Powell is expected to hint at a rate cut in September, but won't say it too clearly. Why? Because the future impact of Trump's tariffs on prices is uncertain... even the Federal Reserve isn't sure!
In short, one sentence: Get ready for volatility, sisters. As soon as Powell finishes speaking, whether it's the crypto market, stock market, or bond market, it may instantly change. Don't forget, in 2022 he once made a strong statement about defeating inflation. This year, although his tone might be softer, every word could shrink or inflate your account.
At 10 PM tonight, get your sunflower seeds and milk tea ready, keep your eyes on the market alerts ⚠️ Let’s not miss each other!
