Recently, Powell's speech really dropped a bombshell on the market! The Federal Reserve is serious this time; it looks like the era of high interest rates will last for a long time. What does this mean for us ordinary investors? #美联储何时降息
Let’s talk about the current situation:
1️⃣ The Federal Reserve's policy is undergoing a major adjustment, abandoning the previous "average inflation targeting"
2️⃣ The high interest rate environment may need to be maintained for a longer time (higher for longer)
3️⃣ There may be 1-2 rate cuts this year, but the extent will be very limited
Why is this happening?
- The inflation beast is too difficult to tame, previously peaking at 7%
- Trump's tariff policy has added chaos to the economy
- The U.S. is currently facing risks of material shortages and skyrocketing prices
Impact on our investments:
✅ Stock Market: High interest rates suppress valuations, pressure on growth stocks is significant
✅ Bond Market: Yields may remain high
✅ Cryptocurrency: Liquidity tightening, volatility may increase
Personal advice:
- Don't expect to return to the low interest rate era anytime soon
- Investments should focus more on cash flow and real value
- Control leverage, cash is king
- Pay attention to anti-inflation assets
Do you think the Federal Reserve's actions are reasonable? How should we invest in a high interest rate environment? Feel free to discuss in the comments section~ Follow me for more practical investment strategies!