CoinVoice has learned that The Kobeissi Letter released the latest market analysis on the X platform, stating that Fed Chairman Powell has effectively yielded, and that the Fed will cut interest rates in a month, attributing it to "weak labor market conditions."
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. At this time, not holding assets will lag behind the market.
To better understand what is happening, it is essential to first understand the Federal Reserve's responsibilities: the purpose of the Federal Reserve is to reduce unemployment and avoid inflation/deflation, which is the Fed's "dual mandate."
Since 2021, the Federal Reserve has been highly focused on inflation. However, Fed Chairman Powell's speech on Friday marked a significant shift: "Changes in the balance of risks may require us to adjust our policy stance." In other words, the Fed now believes that the risk of unemployment is greater than inflation, which almost confirms that interest rate cuts are imminent. [Original link]