Impact of the Federal Reserve's Hawkish Shift on the Market

Recently, the Federal Reserve's policy has shifted to a 'hawkish' stance, meaning a relatively tight monetary policy. Despite interest rate cuts, the pace of future cuts may slow down, leading to market volatility. The stock market has fallen due to policy uncertainty, the bond market is adjusting investment strategies, and the forex market has increased divergence regarding the dollar's trajectory. Emerging markets may face the risk of capital outflows. The Federal Reserve's policy adjustment requires investors and policymakers to closely monitor economic trends and inflation control.