This is abnormal, too abnormal, brothers, something bad is going to happen. Yesterday morning, the number of pancakes went straight to the beginning of the 6-digit number, and this is the reason.
Today, gold broke through a record high, the three major U.S. stock indexes all opened higher and went higher, and the cryptocurrency market also rose across the board. Everything is so abnormal, why are all the U.S. dollar assets like they were stimulated by something and are so excited?
This points to something very unusual, that is, overnight, the probability of the Fed cutting interest rates suddenly increased from 25 basis points to 50 basis points. Last night, the probability of a 50 basis point cut increased from less than 20% to 49% today. What happened overnight that made the Fed change its mind?
Nick, a reporter from the Wall Street Journal who is known as the mouthpiece of the Federal Reserve, published several blog posts in a row, mentioning that the Federal Reserve is now in a very awkward dilemma of whether the interest rate should be 25 basis points or 50 basis points.
First, in his first article, he said that the Fed is more suitable to cut interest rates by 25 basis points, which is exactly the same as the market's previous prediction. But he immediately published a second article with a completely different flavor. He quoted a well-known market figure, a famous advisor to Powell, who gave Powell a suggestion. He said that since the market predicts that the Fed will cut interest rates by 100 basis points this year, why don't you start with a 50 basis point cut? This will make the US economy improve faster.
The market was worried that a 50 basis point rate cut would make people think that the US economy was in recession. Powell only needed to come out and use his words to dispel the market's doubts. Later, Dudley, the former third-ranking official of the Federal Reserve and chairman of the New York Federal Reserve, made a public speech in support of a 50 basis point rate cut.
All of this seems to have been arranged. I believe Powell is behind this. He wants to test the market to see whether the market agrees with a 50 basis point rate cut.
Judging from the market reaction tonight, the 50 basis point rate cut is quite welcome. However, we still need to observe further whether the Fed will cut the rate by 50 basis points next Wednesday.
Mid-September has arrived, and I have already fired more than half of my bullets. I will fire all my bullets in the remaining time and leave no regrets for myself. Looking at the daily chart, all small coins have been adjusting at the bottom for a long time, and the big coins have rebounded first. After the interest rate meeting on the 18th, there will be a good round of market conditions. Even if there is a sharp drop, it is an excellent opportunity to enter the market. I believe that the market in late September and early October will be a surprise!
Since you have read this far, please follow and like before leaving. I am Qingtian, an old investor who sincerely wishes you to get rich!
