FINAL FED MEETING UNDER POWELL: A MAJOR MARKET SIGNAL! Tomorrow, we face one of the most significant FOMC meetings in recent times. It’s also the last one under Jerome Powell’s leadership. Markets are already adjusting; the Fed is likely to keep rates between 3.50% and 3.75%. However, the real focus is not on the number but on the message behind it. THE MAIN QUESTION: Is this just a pause, or is it the start of a long “higher for longer” period? SHIFT INSIDE THE FED Hawkish rhetoric is clearly gaining strength. Even Christopher Waller, who previously favored rate cuts, is now highlighting inflation risks and the need for caution. This shows a clear shift within the Fed toward a more hawkish stance. THE 4th SUPPLY SHOCK IN RECENT YEARS: • Post-COVID recovery • Russia-Ukraine war • Trade and tariff tensions • Middle East energy risk (Strait of Hormuz instability) OIL AND INFLATION PRESSURE: WTI is above $100. Brent is above $105. Higher oil prices mean stronger inflation pressure. Increased inflation reduces the chances of rate cuts. THE BIG PICTURE: The Fed is signaling that inflation returning to 2% is still far off. Fast rate cuts are not likely unless the economy weakens significantly. WHAT THIS MEANS FOR MARKETS: If Powell takes a hawkish stance tomorrow with an "extended pause" and a strong focus on inflation risks, we might see a risk-off reaction, leading to pressure on stocks, crypto, and other risk assets. CONCLUSION: This is not just another Fed meeting. It could mark a turning point in market expectations and the beginning of a new phase of volatility. Tomorrow, every word from Powell will impact the markets. SUBSCRIBE to stay ahead of the latest market updates. LIKE this post to support the content. Share your thoughts in the comments. #FOMC #Fed #Inflation #Markets #trading
