Federal Reserve Policy Shift! The Era of Cheap Money Comes to an End
Powell's latest statement shows that the Federal Reserve's policy logic is undergoing a fundamental change.
Despite inflation falling below 3%, the Federal Reserve still maintains a high interest rate policy, sending a strong signal: the era of loose monetary policy over the past few years may officially be coming to an end.
Key Points:
Change in Policy Stance
Focus shifts from inflation to financial stability
Compared to 2020's "helicopter money", current policies are clearly tightening
Market Impact:
Financing costs will remain high
Asset prices are under pressure
Expectations for interest rate cuts are dashed
New Policy Direction:
Possible adjustment of inflation targets
Greater emphasis on preventing financial risks
Reduction of market intervention
Implications for Retail Investors:
Increased risk of high volatility assets
Importance of prudent allocation rises
Need to pay attention to debt management
Conclusion: The Federal Reserve is driving a paradigm shift in monetary policy, and the market must adapt to the new normal of high interest rates. Retail investors should lower their risk appetite and prepare for long-term responses.
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