#鲍威尔发言 Early Morning Fed Issues Four Warnings, Stock Market Changes Instantly, Retail Investors Beware of Being Trapped!

In the early morning, the Federal Reserve really made a big stir, issuing four warnings in a row, which is quite rare!

The Federal Reserve announced that it would maintain interest rates, but once this warning came out, the U.S. stock market immediately wilted. The S&P 500 index had once broken through the 6000-point mark, but by the end of the day, it fell below that.

Let's first talk about the first warning, the inflation warning. This time, Fed Chairman Powell actually stated that tariffs would push up prices, and this impact may persist. Previously, he usually avoided discussing tariffs, but this time he rarely expressed his stance. To put it bluntly, the cost of tariffs ultimately falls on the common people; when prices rise, our lives will become even harder.

Now let's look at the second warning, the Federal Reserve has reduced the number of rate cuts next year by one. The official statement is that there will be two rate cuts this year, but only one next year. Moreover, the number of officials who believe the Fed won't cut rates at all this year has increased from 4 to 7. There is severe disagreement within the Fed regarding its policies; it's either two rate cuts or simply no cuts at all. The Fed's policy is truly hard to fathom; can investors not feel anxious?

The third warning is even scarier: the economy may experience mild stagflation. Economic forecasts indicate that GDP growth will slow down this year, the unemployment rate will rise, and inflation will be higher. This monetary policy is going to be challenging, caught in a dilemma.