The press conference of Federal Reserve Chairman Powell has ended, with neutral remarks but a hawkish stance...
Due to Powell's numerous neutral comments, discussions around tariffs, inflation, and unemployment rates have been going in circles without a clear attitude. The only clear message is for the market to "wait."
He also stated that the Federal Reserve would lower interest rates before July, and when asked about the expectation of two rate cuts in March, he indicated that the announcement would not come until June. Thus, this implies that the possibility of a rate cut in June is basically true!
In response to Powell's remarks, there have been no significant signals of rise or fall in the U.S. stock market or crypto 📶. However, the U.S. dollar is strengthening while gold is weakening.
We continue to observe the market's reaction after interpretation. May is unlikely to be smooth, as in a non-rate-cutting environment, facing the maturity of both government and corporate bonds, all assets will inevitably be drained, leading to weaker liquidity.
No matter how the U.S. stock market rallies, it is merely a façade, accompanied by liquidity fleeing. We really need to pay attention to safety in May ⚠️.
