The Federal Reserve's May interest rate meeting delivered three shocking messages, revealing the severe challenges facing the US financial market.
First, it is impossible for the Federal Reserve to raise interest rates again. The past hawkish remarks about raising interest rates to 8% were nothing more than smokescreens to cover up the real intentions. The Federal Reserve is reluctant to disclose the specific timetable for interest rate cuts because it is worried that countries around the world will join forces to deal with its strategy of "harvesting the world with high interest rates." At the same time, they also want to use this to scare countries that are approaching debt crises and force them to seek help from US-led financial institutions, thereby accelerating the pace of Wall Street's harvest.
Second, the Federal Reserve announced that it would significantly reduce the scale of Treasury bond sales from June, from $60 billion to $25 billion, which is a clear signal that its monetary easing cycle has begun. This move is intended to slow the pace of market monetary tightening and pave the way for possible interest rate cuts in the future. Behind this decision is the reality that the US financial market is already in danger under high interest rates and monetary tightening policies. The collapse of Republic Bank in the United States is a clear example of this trend, indicating that more banks may face the risk of bankruptcy in the future.
Finally, as for the question of when the Federal Reserve will cut interest rates, it is actually difficult for the Federal Reserve itself to predict. They are currently making a gamble, trying to harvest as many global assets as possible before the US financial industry is destroyed by high interest rates. Once the US domestic financial crisis breaks out or the economy is in a severe recession, the Fed will not hesitate to cut interest rates to cope with the crisis, regardless of traditional indicators such as inflation rate and employment data.
In short, the Fed's decision reflects the tremendous pressure and challenges facing the US financial market. High interest rates and monetary tightening policies have already caused serious damage to the financial market, and the Fed's response strategy is also full of uncertainty and risks. For global investors, it is necessary to pay close attention to the Fed's movements to cope with possible market fluctuations and risks.
