Last night, I went live on a whim, and before 2 AM, the Fed's FOMC dropped. I was tired and ready to hit the sack. I didn't catch Powell's speech; I don't think it’ll have a significant impact on the market since he's stepping down anyway. However, Bitcoin took a dive, dropping 1000 points, and today it bounced back to yesterday's level, clearly just a temporary spike. I looked over today's meeting content, did some整理, and wanted to share it with you all.
First off, the conclusion: there’s no chance of rate cuts before June. Powell's continued tenure is an uncommon move, likely to deal with Trump. The Fed is seriously fragmented, much like the current state of the US, and the expectations for rate hikes are higher than for cuts. Bitcoin is still set to drop further.
The Fed has kept the benchmark interest rate steady at 3.50%-3.75%. The rate decision and policy statement have received the most dissenting votes since October 1992, with a rare 8-4 split in the FOMC vote. Job growth remains sluggish, the unemployment rate hasn’t changed much, and inflation is 'high', whereas it was previously described as 'slightly high', highlighting the impact of global energy prices.
Powell: Inflation is high, partly reflecting rising energy prices, and recent inflation expectations are climbing. He will continue in his role after May 15, adopting a low-profile stance, disagreeing with the Trump administration. He had plans for retirement but has no choice now but to stay on due to legal challenges that have severely impacted the Fed's independence. Perhaps in the next meeting, they’ll consider shifting from the current dovish stance; he will never be a shadow chair, and those opposing the dovish stance aren’t leaning toward rate hikes.
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First off, the conclusion: there’s no chance of rate cuts before June. Powell's continued tenure is an uncommon move, likely to deal with Trump. The Fed is seriously fragmented, much like the current state of the US, and the expectations for rate hikes are higher than for cuts. Bitcoin is still set to drop further.
The Fed has kept the benchmark interest rate steady at 3.50%-3.75%. The rate decision and policy statement have received the most dissenting votes since October 1992, with a rare 8-4 split in the FOMC vote. Job growth remains sluggish, the unemployment rate hasn’t changed much, and inflation is 'high', whereas it was previously described as 'slightly high', highlighting the impact of global energy prices.
Powell: Inflation is high, partly reflecting rising energy prices, and recent inflation expectations are climbing. He will continue in his role after May 15, adopting a low-profile stance, disagreeing with the Trump administration. He had plans for retirement but has no choice now but to stay on due to legal challenges that have severely impacted the Fed's independence. Perhaps in the next meeting, they’ll consider shifting from the current dovish stance; he will never be a shadow chair, and those opposing the dovish stance aren’t leaning toward rate hikes.
【BTB Research】: Be a guiding light in the crypto world
【Four Don'ts】: No calling trades, no managing trades, no rebates, no contract teaching
Binance Growth Companion Officer【Coach A】: Live broadcast every Tuesday and Saturday at 9 PM
$BTC
@CZ @Yi He @Richard Teng