🔔 All Eyes on Monday: Now Add Powell’s Bombshell to the Mix
Markets were already reeling from last week’s tariff-triggered crash, with fears of a 1987-style Black Monday resurgence looming large.
Now?
Fed Chair Jerome Powell just slammed the door on hopes for rate cuts — and the shockwaves are global.
🧊 Powell’s Midnight Shock: “Rate Cuts? No Way.”
In a late-night press conference, Powell obliterated the rate cut fantasy:
🗣️ “With inflation still at 6.5% and a 2.9% core PCE, there will be no rate cuts in 2025. Period.”
✅ The camp once favoring two rate cuts this year?
Grew from 5 officials to 9 — but all shifted to opposition. A coordinated pivot that sent a chilling message.
🔒 Fed Policy Won’t Bend — Even in a Trade War
Powell referenced historical precedent, saying:
“Even during past trade wars, the Fed did not ease. In fact, we may need to tighten further.”
This comes amid Trump’s aggressive tariff escalation, and leaves no room for the market to cling to a soft Fed.
📱 The Screensaver That Said It All
In response to questions on political pressure and personnel changes, Powell’s phone screen reportedly read:
“Sovereignty is mine.”
A bold declaration of Fed independence, signaling that even White House pressure won’t shift policy.
💣 The Setup Heading Into Monday:
Jim Cramer warns of a 1987-style crash without Trump compromise
Bill Ackman hopes for a last-minute tariff delay to spark a relief rally
Marko Kolanovic warns: “Short sellers are now in danger”
And now: Powell slams the brakes on monetary support
📉 What Happens Next?
If Trump doesn’t blink, and Powell refuses to pivot, we’re staring down a Monday with no Fed cushion and no tariff relief.
Could we see
🚨 A circuit-breaker hit?
📉 A 10–20% flash crash?
📈 Or a surprise rally if Trump blinks first?
🤔 Investor Sentiment:
Are you:
🔐 Hedging?
📦 Sitting on cash?
💥 Going risk-on?
Drop your thoughts below 👇