BTC broke 7, and I was in awe. Is the interest rate hike over, will interest rates be cut in June? #BTC #EOS #pepe
The next Fed monetary policy meeting will be held on March 19-20.
Fed Mester: Will cut interest rates this year, but not in a hurry.
Powell said the Fed's confidence is close to the level needed to cut interest rates. Last time he said interest rates may have peaked.
After the release of non-agricultural data, the market began to analyze and believe that the probability of the Federal Reserve starting to cut interest rates from May to June has become higher.
Generally speaking, these two data and the Fed's speech seem to be in a good direction, at least there is a trend from hawk to dove.
In fact, this current situation has been doomed for a long time. Raising interest rates is not durable, and maintaining high interest rates is not durable either. Therefore, an interest rate cut is a matter of time, and it will be reflected in the market sooner than later.
Brother Wang said in many articles last year (see screenshot) that it would take at least several months, or even half a year, to plan for an interest rate cut in advance.
Why is it always too late to wait for an interest rate cut?
Goudu's interest rate cut will benefit the big pie, and Gouzhuang knows better. Is it possible that it will rise when the news of a confirmed interest rate cut comes out, giving everyone a chance to get on board?
Therefore, it is in the interest of Gouzhuang that the market price appears early or delayed. Venture capital has always been deployed when there is risk, and when retail investors are disappointed, it will not give all retail investors a chance.
This is a basic law, but it is a very high-level routine. If the routine is well played, it will never deviate from its original principles, allowing retail investors to cut off their meat before the bull market and get on the bus before the bear market.
Raising interest rates may not necessarily lead to a fall, and cutting interest rates may not necessarily lead to an increase. In the early stages, a reverse trend may occur.
But after many interest rate increases and cuts, near the middle or end of the period, it will definitely be reflected in the financial investment market.
In other words, in the early stages of an increase or decrease, market makers may control reverse trading, with the purpose of killing retail investors who invested in the news of interest rate hikes and decreases, especially in the leverage and derivatives markets. But after interest rates were raised and lowered for a period of time, Gouzhuang had no choice, because the torrent could not be stopped.
So you need to pay attention to two things later:
1-Before and after the first interest rate cut (which will not last too long), it may turn from good to bad.
2-After the interest rate cut, stablecoins may fall with the decline of the US dollar exchange rate, so large funds should be prepared before the interest rate cut.
Why is it so difficult to raise interest rates six months or one year after the end of the rate hike?
To understand this issue, we must first understand the purpose of raising interest rates.
The reason for raising interest rates is to reduce money supply, curb consumption, curb inflation, encourage deposits, and slow down market speculation. Raising interest rates can also be used as an indirect means to increase the value (exchange rate) of the country's or regional currency against other currencies. Raising interest rates is an action by the central bank of a country or region to raise interest rates, thereby increasing the borrowing costs of commercial banks from the central bank, thus forcing the market interest rates to also increase.
To put it simply, money is taken back to the central bank by raising interest rates, and at the same time, it increases loan interest rates for individuals, commercial banks, and enterprises, encourages deposits, and weakens the risk investment market and consumption.
But this is not a completely positive strategy to curb inflation, but it has a series of problems.
Therefore, after more than a year of raising interest rates, interest rates are often lowered, and then the money flows out. In the end, the money always has to be transferred, whether it is consumption or investment.
One year after the interest rate hike ends, it will not make much sense to increase interest rates again.
All in all, there is a small chance that interest rates will be raised three months before a rate cut.
It is indeed good not to raise interest rates but to cut interest rates, but you also need to operate according to your own plan. The market is unpredictable. The pie has exceeded 70,000, and copycats must be more cautious.
Finally, the market will not completely follow the changes in interest rates, but will be digested in advance. Therefore, it is wrong to buy and sell based on the news. You must buy and sell according to the cycle.
Buy with the banker and sell with the banker. You must continue to make arrangements when you are panicking and falling. You must continue to make profits when the market continues to rise.
At the same time, I also remind everyone that Brother Wang is not betting on the market decline, but riding a donkey to read the songbook and manage positions in a timely manner.