🔥ATTENTION🔥
💥The FED'S PROJECTIONS show that there will be 2 CUTS and that ASSET SALES by the FED will be REDUCED
🗣Bob Michele from JPMorgan: "This is a DOVISH FED (dovish is a stance that favors economic growth and employment through low interest rates)"
What are the most important updates⁉️
🔹The FED announced that instead of SELLING $25B in assets per month they will only sell $5B
🔹This is POSITIVE for the market and shows that the path is to END QT (the sale of assets)
🔹Now interest FUTURES expect 2 CUTS of 0.25% each for this year as projected by the FED
👉OTHER INTERESTING DATA
🔹The Federal Reserve cuts the GDP growth projection for 2025 to 1.7% from 2.1% in December.
🔹The Federal Reserve raises the unemployment projection for 2025 to 4.4% from 4.3% in December.
🔹The Federal Reserve raises the PCE INFLATION projections for 2025 from 2.5% to 2.8%
🔹These 3 data points suggest STAGFLATION, which Powell had stated he did not see as possible
📍Now the FED's dilemma is whether to grow the economy at the cost of higher inflation or to reduce inflation at the cost of a decline in the economy
📍The latter could cause a RECESSION, which is BAD for the market
📍What Powell says in the press conference is fundamental
