Recession pot, the Federal Reserve's?
After the non-farm data adjustment, the market exploded again, and this time everyone pointed the finger directly at the Federal Reserve, saying it must bear 90% of the blame!
In 2021, inflation soared to 5%, and it claimed it was only temporary, then crazily printed money for QE. By 2025, inflation dropped to 3%, yet it was hesitant, refusing to lower interest rates, citing fears of inflation rebounding. So when inflation is high, it stays calm, but when inflation is low, it becomes nervous? A typical fence-sitter!
To put it simply, the Federal Reserve's decisions have never been purely economic issues. As Chairman Powell, he must avoid a resurgence of inflation while also fearing the label of causing an economic collapse.
After all, for ordinary people, rising prices can be endured, but unemployment is truly deadly! So once employment data falters, Powell will certainly lower interest rates to save the market without hesitation because he has already stated that the U.S. has achieved a soft landing, and inflation is not his number one enemy in his eyes.
Moreover, the Federal Reserve is now being pressured by the Democratic Party, becoming a tool in opposition to Trump. Political struggles have muddled normal monetary policy.
So don't be fooled by the Federal Reserve's rhetoric; while it publicly calls for controlling inflation, what it is really calculating is the political account. If an economic recession truly arrives, it cannot escape responsibility!
