【Explosive Start】🔥🔥🔥 Just now, the Federal Reserve's internal war is fully exposed! Boston Fed President Collins made a significant statement, personally admitting that the probability of a rate cut in December has sharply cooled! She stated that she feels "hesitant" about rate cuts and emphasized that maintaining a "moderately restrictive" policy is very appropriate in the current inflation environment!
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💥 Internal Division Confirmed
Collins's statement completely confirms the huge divisions within the Federal Reserve! Meeting minutes show that officials have "strongly divergent views" on a rate cut in December.
· "Many" officials believe that interest rates should remain unchanged this year
· "Some" officials insist that it may be suitable to continue cutting rates in December
This open opposition could make the FOMC meeting in December the most significant divergence of opinions in years.
📉 Data Shortage Compounds Problems
Complicating matters further, due to the previous U.S. government shutdown, key economic data is severely lacking. The Federal Reserve will be unable to obtain complete official employment and inflation reports before the December meeting, making decision-making akin to navigating through fog, adding another layer of uncertainty to the prospect of a rate cut.
🛑 The End of an Era: QT Confirmation of Termination
However, the market has also received a certain signal: the Federal Reserve's balance sheet reduction (QT) will officially end as planned on December 1. This means the end of the quantitative tightening cycle that began in June 2022, providing long-term support for market liquidity.
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Has Collins's "hesitation" already set the tone for a "wait and see" approach in December? When the Federal Reserve itself is caught in a directional dispute, market volatility is bound to intensify! Are you choosing to buy the dip now, or is cash king as you wait for clearer signals? Share your operations in the comments! 💬
