The world is closely watching the Federal Reserve! Will there be a signal for an interest rate cut on May 8?
On May 6, with less than 40 hours left until the Federal Reserve's interest rate decision, global markets are holding their breath. Although investors are anticipating good news about an interest rate cut, reality may disappoint most – this time, the Federal Reserve may not even provide hints like "a potential cut in the future."
Why is cutting rates so difficult? The key lies in two conditions:
First, inflation must be fully controlled;
Second, the economy must face serious problems.
Currently, neither of these conditions is met, making a rate cut in May highly unlikely.
What worries the market even more is the fluctuating tariff policies of the Trump administration, which add a lot of uncertainty to the future. Unless there are significant economic changes, a rate cut in the short term may just be a beautiful wish for investors.
Trump has recently been vocal on social media: "There is no inflation at all, hurry and cut rates!" The reason is simple – cutting rates can stimulate the economy and boost the stock market, which are political capital he desires. But will the Federal Reserve really listen to him?
At the same time, the cryptocurrency market is also brewing changes. Tomorrow, Ethereum will undergo an important upgrade. Historical experience shows that the price of Ethereum often plummets after each upgrade, like last time when it halved from $4000. Will it repeat the same fate this time? Or will it rise first and then fall? The market is watching closely.
In this moment filled with uncertainty, what investors need most is to observe calmly. Every move of the Federal Reserve and subtle changes in economic data could become key factors affecting the market.
Remember: the market always creates opportunities amid fluctuations, but also harbors risks.
