Powell splashed cold water on the market last night! Interest rate cuts? Don't even think about it!
In last night's statement, Powell shattered the market's dreams of 'four interest rate cuts' in one breath! Faced with a 6.5% unemployment rate and a 2.9% core PCE, he not only clearly stated that interest rate cuts this year are 'out of the question', but also cleverly increased the number of supporters for 'two interest rate cuts' in the dot plot from 5 to 9, instantly leaving the market devoid of hopes for rate cuts.
Tariffs and loose policies? Powell even directly threw out the historical account from 1988, telling reporters that even if Trump raises taxes, the Federal Reserve may not necessarily ease up, and could further tighten instead. This implies that the U.S. cryptocurrency market should be prepared for high interest rates and tightening policies.
More assertively, when a reporter asked if Trump would replace him, Powell directly revealed his phone's screensaver—'This is my turf, I call the shots!', suggesting that even political pressure could not shake his position, at least remaining stable until next June.
Conclusion: This time, Powell's tough stance has sent a clear signal to the market—under his approval, there is no chance for a bull market!