Trump's 'Policy Fog' + Powell's Dilemma, Markets Hold Their Breath
On March 20 at midnight Beijing time, the Federal Reserve will announce its interest rate decision, followed by a press conference by Powell, drawing high global market attention. This meeting will assess the impact of Trump's new policies on the U.S. economy and discuss inflation control and adjustments to monetary policy.
The market is under pressure, Bitcoin has retreated, falling to $83,215, down 1.5% over 24 hours, with mainstream coins like Solana and Ethereum experiencing even larger declines. The U.S. stock market's Nasdaq and S&P 500 indices also declined. The market is concerned that the Federal Reserve will not cut interest rates for now, despite a slight easing in February's inflation.
It is estimated that the Federal Reserve will stay put, with the dot plot becoming the focal point. The market expects interest rates to remain at 4.25%-4.50%, with a low probability of rate cuts. The uncertainty surrounding Trump's policies is prompting the Federal Reserve to take a wait-and-see approach, and the 'dot plot' will reveal the future interest rate path, where any adjustments could trigger volatility.
The crypto market is affected, with risk assets like Bitcoin being suppressed by high interest rates, hovering around $83,000, and market sentiment is 'fearful'.
Summary Powell's statements will set the market tone, dovish signals may prompt a rebound, while hawkish stances could exacerbate declines. Investors need to remain vigilant and closely monitor the results.