"As long as conditions permit, we will raise interest rates again."
Powell's words changed the direction of the market. The issue of interest rate hikes was temporarily shelved, and the big call for interest rate cuts was waved.
So, will the Fed raise interest rates again to stimulate the market and raise the dollar and US bonds?
First of all, at 21:30 next Tuesday, we have to look at the October CPI data. This time the market unanimously believes that inflation will be lowered. The CPI in September was 3.7%, and this time the forecast is only 3.3%.
It seems that the market is still relatively optimistic. If the inflation data in October is consistent with expectations, the probability of raising interest rates will be lowered instead. Certainly, the call for interest rate cuts in April next year has been very high.
Now, regarding interest rate hikes and interest rate cuts, there is a time window. The growth rate of employment in the United States has slowed down significantly, and the unemployment rate has also hit a new high. Will the Fed continue to stimulate CPI to the long-term target of 2% by raising interest rates? It remains to be discussed.
Lowering inflation is a problem that the Federal Reserve has been dreaming of solving for the past year and a half. The truth is sometimes not important, expectations are the key, and changes in market sentiment drive price fluctuations.
As long as interest rates are lowered, the general trend of Bitcoin will be bullish. As long as interest rates are planned to rise, it will start to fall. Especially for those who play spot games, they care more about the current direction. Instead of worrying about whether interest rates will be lowered next year, it is better to care about where Bitcoin is going now. $BTC $ETH #加息