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The sky is falling, the market is crashing, and the Block chain is killing! Is Powell going to destroy the Bull Market? Let me tell you, it's all just a smokescreen, the best golden period for picking up passengers in reverse!
After Federal Reserve Chairman Powell's speech last night, the market experienced a major crash! Despite announcing a 25 basis point rate cut, why is the market lamenting? The reason is that the median in the dot plot has risen to 3.9%. The dot plot represents the forecasts of Fed officials, with each person making their own judgment. This means that if next year's expectations hold, only two more rate cuts will be needed. What does this mean? It means that the rate-cutting momentum will not continue, and the anticipated major stimulus will also be gone next year. The market suddenly turned pessimistic.
So why do they say all of this is a smokescreen?
Actually, during the previous bull run, these guys from the Federal Reserve liked to do this! And it was mentioned in the previous articles. They would quickly cut interest rates to a suitable level. Because, you know, the market knows that you Americans are going to inject liquidity, so the institutions come running, quickly entering the market and feasting on this continuously growing cake. But for their own interests, they certainly can't let you make money so easily. Suddenly, they release an unexpected dot plot, which affects market expectations. They just don't want you to keep having it so good. Speaking of this dot plot, it's just a prediction, accurate or not? It's all their internal staff, they can easily manipulate the data and release it to shake up the market, just to firmly hold the initiative in their hands. Everyone, don't be confused by this news, it's just trying to shake people off the car, so rest assured!
Next January, Trump will take office. Trump's policies include cutting taxes, reducing inflation, supporting cryptocurrencies, and strengthening the dominance of the US dollar to make America great again. This will definitely lead to significant changes, with interest rates expected to decrease and quantitative easing on the horizon. This keen political insight comes from someone with seven years of experience. What's more likely is that Powell is intentionally doing this, secretly assisting Trump's ascension. Just like how 'Biden' once helped Trump, it's a declaration of support.
So do you know why Powell did this?