This year's Jackson Hole symposium of the Federal Reserve is completely different from before! In past years, those central bank bigwigs would finish their meetings and go hiking or chat, but this year it turned into a large-scale tense scene!
Federal Reserve Chairman Powell spoke last Friday: an interest rate cut might happen in September! But don't celebrate too early—there's chaos within; some support it, while others fiercely oppose it. Even Powell himself said: the current economic situation is really too! Difficult!
With inflation not coming down and the job market starting to weaken, policies are being pulled in both directions, and the future is filled with uncertainty. The president of the Chicago Fed also secretly said, 'This situation is too complex, all the signals are contradictory!'
What’s even more exciting? Trump was nearby, adding fuel to the fire! He directly called for the firing of a female executive at the Fed, just because she was involved in a mortgage scandal, clearly trying to force the central bank to cut rates.
The on-site security was as strict as filming a movie! The police were fully armed, and a Trump supporter was escorted out on the spot because he directly confronted that executive!
So the question arises: cut interest rates, or refuse to cut them? Powell has been ambiguous this time, unlike last year when it was more explicit.
Here comes the key point!! What does this mean for us cryptocurrency enthusiasts? If rates are really cut, the dollar may weaken, and funds might flow back to speculate on Bitcoin and Ethereum! But if inflation can't be suppressed and they fall apart internally, when the market gets chaotic, the crypto market might first drop as a warning!
Moreover, with Trump continuously applying pressure, Powell's term may not be safe next May, the Fed is becoming more politicized, and once its independence is lost, volatility will only increase! The global market is watching this big show; the euro has already reacted—up 1%!
So, don't be fooled by this high-level meeting of central bank bigwigs; it actually relates closely to you and me holding currency and investing. Remember: when they hesitate, that's when we should be most vigilant. Fasten your seatbelts, September is destined to be turbulent.
