Tonight, the global market faces a crucial battle: at 22:00 Beijing time, Federal Reserve Chairman Jerome Powell will deliver a speech – this is not only a policy barometer but also the absolute focus that stirs the nerves of global funds.
Once policy signals change, the market is bound to stir.
Powell's speech resembles a game of "expectation management" between the Federal Reserve and the market. The market hopes for a clear commitment to interest rate cuts, but the Federal Reserve is more likely to retain flexibility.
Therefore, be highly vigilant of the reoccurrence of "buy the expectation, sell the fact" – that is, regardless of what Powell says, the market may experience intensified fluctuations or even corrections due to the fulfillment of expectations.
From a rational perspective, it is wise to wait and see. Before the dust settles, patiently waiting for a clear direction might be one of the best strategies.
