$USDC Early morning, the Federal Reserve issued four alarming warnings! The stock market instantly changed its face, retail investors beware of being trapped!
In the early morning, the Federal Reserve really made a big stir, issuing four warnings in a row, this operation is too rare!
The Federal Reserve announced to keep interest rates unchanged, but as soon as 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 ended up closing below it.
Let's talk about the first warning, the inflation warning. This time, Federal Reserve Chairman Powell actually said that tariffs will push up prices, and this impact may continue. He used to avoid talking about tariffs, but this time he rarely expressed his stance. Simply put, the cost of tariffs ultimately has to be borne by the public, and when prices rise, our lives will only get harder.
Now, let's look at the second warning. The Federal Reserve has reduced the number of interest rate cuts for 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 that the Federal Reserve will not cut interest rates at all this year has increased from 4 to 7, indicating serious internal disagreement within the Federal Reserve. Some believe there will be two rate cuts, while others think there will be none at all. The Federal Reserve's policy is really hard to fathom, how can investors not be anxious?
The third warning is even scarier, the economy may experience mild stagflation. The economic forecast summary shows 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 difficult to handle, caught in a dilemma.