📉 The Fed is on hold, and market expectations are dashed! 📉
📢Today, the Fed’s decision was released, and the meeting decided to continue to maintain the policy interest rate. Although the market originally believed that the interest rate cut was almost a foregone conclusion, the Fed’s statement this time seems to be much tougher than everyone imagined.
🗣️However, Fed Chairman Jerome Powell revealed at a press conference that although the interest rate trend in September has not yet been decided, his speech makes us feel that the date of the interest rate cut seems to be "getting closer and closer" to us.
👏At the same time, this is also in line with the general market expectations, and even the market has generally expected that the central bank has a 100% chance of cutting interest rates at the September meeting.
👀 Let’s take a look at the market’s reaction: bond yields and the US dollar have risen a little, but overall they are still low; the price of the Bitcoin market has also fallen, which has led to a slight downturn in the entire crypto market; the US stock market is quite happy, and the Nasdaq and S&P 500 indexes have a certain degree of small increase on the day.
📊Looking back at historical data, the Federal Reserve has implemented a historic tightening policy since 2022, raising interest rates from 0% to 5.25%-5.50%, and the inflation rate has basically remained above 2%.
🤔What do you think of the Fed's FOMC meeting and Powell's speech? Do you think there is still a high possibility of a rate cut in September? Will the Fed's decision affect your investment strategy? Welcome to share your thoughts in the comment section!