Tonight, the whole world is focusing on the meeting of the US Federal Reserve (FED) as they announce their decision on interest rates and policy direction for the upcoming period.

This event not only impacts the US economy but also has far-reaching effects globally.

In recent years, the global economy, including Vietnam, has struggled as the FED raised interest rates to a record high of around 5%, while the average interest rate in the US usually hovers around 1%.

Everyone agrees that the likelihood of the FED lowering interest rates tonight is very low.

However, the Trump administration and the US economy are in desperate need of this move to stimulate growth. After six months in power, this is the period when Trump usually intensifies policies to create momentum for the second year, especially in preparation for the important upcoming elections for the House and Senate.

The next FED meeting is not until the end of September, which is near the end of the year, causing Trump to be anxious. Recently, he visited the FED and criticized the construction of a new headquarters costing $3.1 billion as a way to pressure FED Chairman Jerome Powell.

The FED is currently in a difficult position: if they lower interest rates immediately, they will contradict their previous hardline stance; but if they do not lower them, pressure from various sides will increase.

The puzzling thing is that the US stock market has continuously reached historical peaks (ATH) recently without a clear reason, leaving both the public and US economists confused. Without positive news to sustain the upward momentum, the market risks becoming a bubble and collapsing quickly, which would be detrimental to Trump.

With limited understanding, it is difficult for me to accurately predict tonight's scenario.

The cryptocurrency market has sharply declined over the past three days, indicating that investors have already reacted to the news.

Regardless of the outcome, the market may recover after a short period. I expect a surprising development like an interest rate cut, but this seems unlikely.

A more reasonable scenario might be that Powell will use a dovish tone, hinting at or outlining a plan for interest rate cuts this year, helping both sides maintain face.

How do the chips see it :)))