The Fed’s decision to maintain the interest rate cap at 5.5% is consistent with market expectations. It seems calm, but in fact, there are undercurrents.
Bao’s speech is like seeing flowers in the fog, which makes people confused.
He said that the consensus of the committee is gradually approaching a rate cut, but emphasized that it has not yet reached that critical point. This is like a boot hanging in the air, which makes people feel nervous.
Rate cuts seem inevitable, but when they will land depends on his mood.
This mood may be hidden in those complex data and risks.
Inflation is no longer the only criterion for rate cuts, which undoubtedly brings more variables to the market.
The 2% target seems far away, but it makes people full of confidence.
After all, in the balance between data and risks, the Fed is always cautious and treading on thin ice.
With the election approaching, whether to cut interest rates has become a sensitive topic.
Bao made it clear that the September rate cut is not set in stone, and any political decision needs to consider the balance between data and risks.
It's like a game of cards, and every card needs to be played carefully.
Economic data shows that the situation is not bad. Although some areas have shown signs of weakness, the overall problem is not big.
A lower unemployment rate and a more balanced labor market may be an important consideration for a rate cut.
However, the downside risks facing employment still exist, which is like a time bomb, forcing the Fed to be cautious in making decisions. $BTC
