🇺🇸 The Federal Reserve cannot wait any longer now.
There are some signs of economic weakness, and I believe the Federal Reserve will act soon.
Let me explain why.
The S&P 500 index dropped by 10% in just two trading days, losing $5 trillion in value.
The last time the S&P 500 index fell by 10% or more in two days was in March 2020 (COVID crisis) and November 2008 (the Great Financial Crisis).
In both cases, the Federal Reserve took emergency interest rate cuts and flooded the economy with quantitative easing.
Another worrying indicator is the rise in credit risk in the United States; it has now reached its highest level since the banking crisis of 2023.
A credit event is simply a borrower's inability to meet their payments, which poses a risk to the economy (as occurred in the 2008 financial crisis).
I believe Bitcoin is already influencing all these factors, which is why it maintains its strength.
After yesterday's collapse, the Bullish Market Index also shows a 53% probability of four or more interest rate cuts in 2025.
No matter what Powell says, the truth is that he will have to move faster; otherwise, there will be a "financial disaster."
