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Why won't there be a rate cut in September?
1. The unemployment rate in the United States is currently 4.2%, at a historically low level, with no need for interest rate cuts.
2. Core inflation PCE is 3.1%, and the Federal Reserve's target is to reduce it to below 2%. If there are further interest rate cuts, combined with the impact of trade tariffs, it will lead to higher inflation, and there's no need to make matters worse.
3. The U.S. stock market currently has a certain bubble, and further interest rate cuts will only accelerate the stock market bubble, increasing the risk of a financial crisis.
The main reason for the interest rate cut is simply the 35 trillion debt of the United States, which requires lowering the interest rates to reduce interest expenses.
Regarding the debt issue, Trump has responded through tariff measures, and lowering interest rates won't solve much unless it drops below 1%. That's impossible.
So, there will be no interest rate cuts in September, then the US stock market will drop, and the cryptocurrency market will also decline. After a certain level of correction, in October, there will be news of interest rate cuts, which will be used to harvest from the cryptocurrency market to address the debt issue.
The script should be like this, stay tuned 😎