Plunge! A historic plunge, Black Thursday, the Fed's meeting rate released a hawkish tone.
First, after Powell cut interest rates by 25 basis points, he directly told everyone that the first phase of the Fed's interest rate cut has been completed, and that the Fed will slowly cut interest rates based on data and slow down the rate cuts, which is an obvious hawkish statement.
The second point is that the dot plot is more radical than the market's previous forecast of reducing interest rate cuts from four to three next year. The direct voting committee believes that there will be only two cuts next year and only two cuts the year after, which is the biggest blow to the market!
Last night, the US stock market plummeted, and the three major indexes all fell by about 3%. The Nasdaq fell by 3.5%. The US dollar index soared directly above 108, and the leading crypto-currency Bitcoin plummeted by 8,000 points.
The third point of hawkishness is to raise the US economic forecast. The GDP in 2024 has been raised from the previous forecast of 2.0 to 2.5, a direct increase of 25%, and the PCE inflation index has also been raised from the previous 2.3 to 2.4. In other words, the Fed believes that the economy is good, employment is good, and inflation will be high. These three high indicators will make the Fed not in a hurry to cut interest rates.
