Will the meaning definitely lead to interest rate cuts?
米格说趋势
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Internal news has confirmed: The Federal Reserve's trump card has been revealed! Wall Street giants are frantically accumulating, and the last train for retail investors to get rich is about to depart!
The wind has changed! The Federal Reserve has suddenly turned its guns around.
Brothers, pay attention! This move by the Federal Reserve is an epic turnaround!
Just three days ago, they were stubbornly focused on inflation, now Powell is directly laying it out at the Jackson Hole meeting — the job market is the favored child!
In simple terms: The Federal Reserve's minutes released last Wednesday stubbornly stated that "the risks of inflation are greater than the risks of employment."
The slap in the face came too quickly — the employment data released last Friday for July collapsed so badly that even the mother wouldn't recognize it (expected drop + previous two months' data revised down by 258,000).
Powell immediately changed his tune today: "Policy needs to be adjusted based on changing risks," the implication being that "the interest rate cut button is ready to go."
This turnaround actually hides some mysteries! In May, the Biden administration just restarted the "Maximizing Employment Act," and now the Federal Reserve immediately follows suit — the political implications weigh far more than economic considerations.
Just like when Silicon Valley Bank collapsed in 2023, the Federal Reserve will always prioritize keeping the job market from collapsing.
Last October, when the Federal Reserve hinted at pausing interest rate hikes, BTC surged 28% in a week. If they start a rate-cutting cycle this time, it could very likely replicate:
Enhanced dollar liquidity
Risk assets will welcome new lifeblood
The crypto market will benefit first and foremost
In the coming months, each non-farm payroll data release will become a trigger for interest rate cuts, so it's advisable to set data reminders! #杰克逊霍尔会议
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