According to ChainCatcher news, The Kobeissi Letter released the latest market analysis on platform X, stating that Federal Reserve Chairman Powell has actually yielded, and that the Fed will cut interest rates in a month, attributing it to "weakness in the labor market."
Meanwhile, the PPI inflation rate has reached its highest level in three years, and the CPI inflation rate has remained above 2% for 53 consecutive months. If assets are not held at this time, one will lag behind the market.
In order to better understand what is happening, it is essential to first understand the responsibilities of the Federal Reserve: the purpose of the Federal Reserve is to reduce unemployment and avoid inflation/deflation, which is the Federal Reserve's "dual mandate."
Since 2021, the Federal Reserve has been highly focused on inflation. However, Chairman Powell's speech on Friday marked a significant shift: "Changes in risk balance may require us to adjust our policy stance." In other words, the Federal Reserve now believes that the risk of unemployment is greater than that of inflation, which almost confirms that an interest rate cut is imminent.
