Is the big event coming? The Federal Reserve changes its stance, the dollar strengthens, and the market is about to get chaotic?
The Federal Reserve has suddenly changed its stance, and the dollar has become a safe-haven asset, the market is going to be in turmoil this time!
The rumors of interest rate cuts have been around for quite a while now; is it really going to cut in June, or is it just teasing us? This move feels complicated! The Federal Reserve might first release the news that it will definitely cut rates this year, tricking the EU and Canada into taking action in June while it sits back and watches the show.
And then? At that time, it might say it won't cut rates after all, the economy hasn't collapsed yet, and the Federal Reserve suddenly changes its stance, saying, "Let's cut at the end of the year, or maybe not at all," and conveniently stops the balance sheet reduction, steadily protecting US Treasuries. This tactic is quite ruthless! The dollar directly benefits from this and is set to strengthen!
But the plot isn't over yet! Imagine this: after June, Ukraine's military aid doesn't keep up, the Russian army launches a major offensive in the summer, and the front lines are pushed forward. Europe will definitely be scared; the stock market, bond market, and crypto market will all tremble. If this really happens, won't the market be turned upside down? The Federal Reserve's "luring the enemy deeper" strategy, combined with the escalation of geopolitical crises, will surely boost the dollar's trend, but risk assets might take a hit. Or could the crypto market turn the tide? Besides, everyone is shouting, "BTC is the king of safe-haven assets," can the stock market still be trusted?
Is the Federal Reserve's series of flip-flops truly playing the market in circles, or is the situation in Ukraine the key? Let's discuss how to analyze this major market event, or guess where capital will flow?
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