🔥May 7 Federal Reserve Decision: Rate Hike or Cut? The Market's Fate is in Powell's Hands!

The Federal Reserve will announce on May 7 whether it will adjust interest rates, with expectations that the rate will remain unchanged between 5.25% and 5.50%. However, the market's focus is on Powell's statements! Whether there will be a rate cut in June will become the focal point, especially as employment and inflation data may determine the direction of future rate hikes.

May: No Surprises

Most analysts believe that the Federal Reserve will choose to pause rate hikes, which is almost a certainty for the market. Although inflation is not yet fully controlled, the Federal Reserve's short-term decision-making is unlikely to change.

June: A Possible Turning Point

If employment or inflation data shows weakness, the possibility of a rate cut will significantly increase. The market's focus has now shifted to June's economic data, as falling inflation and slowing employment could prompt the Federal Reserve to make a rate cut decision.

Powell's Speech is Key!

Powell's words will directly affect market reactions. If he reveals a hawkish stance, it could trigger a market sell-off, especially for interest rate-sensitive assets such as tech stocks and Bitcoin, which will come under pressure.