Federal Reserve May Meeting: Continuing to Hold Steady, But Rate Cuts Are Becoming Increasingly Uncertain
Key Facts:
Interest rates remain unchanged at 4.25%-4.5%, marking the third pause in rate hikes
The market had long anticipated this outcome, especially since rates were cut three times at the end of last year
Why is there reluctance to change interest rates? Three hard truths:
Inflation is indeed cooling: Prices fell by 0.1% month-on-month in March, and the annual inflation rate dropped to 2.4%
The job market is still booming: April employment data is as steady as a rock
The economy is still growing, although Trump's tax policies resemble a ticking time bomb
Powell, that old fox, translated his own words:
"What’s the rush?" → The Federal Reserve still has cards to play
"Trump's tariffs may keep prices rising for a while longer" → Implicitly admitting that policy is influenced by politics
"We are very independent" → A classic case of misdirection
The most critical signal: The market has been doused with cold water! Originally expecting rate cuts in the summer, now the earliest possibility is in July, and this year there may only be 2-3 cuts at most. If you ask me, these people are just stalling for time, waiting for the election results to become clear. Economic data? Just props for their performance.
Are you stuck? When to buy the dip? It’s still the same saying: feeling lost and helpless without knowing what to do, click on the profile to comment. I need fans; you need references.
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