Are the global central banks 'singing a different tune'? The crossroads of the Federal Reserve and the European Central Bank, a storm is coming!
As the global market holds its breath waiting for the Federal Reserve to 'ease', the European Central Bank has sent out a completely different message — they not only do not want to cut interest rates, but the next step may even be 'raising rates'.
Just now, the 'hawkish' representative of the European Central Bank, Schnabel, spoke out rarely, clearly affirming the market's expectation that the European Central Bank will raise rates next. She emphasized that the current interest rate level is already the 'lower limit', and the risks to the economy and inflation still 'tilt upward'. This means that, in the eyes of the European Central Bank, the battle against inflation is far from over.
This stands in sharp contrast to the 'rate cut drama' about to unfold at the Federal Reserve.
In summary: on one side is Europe, which may raise rates, while on the other side is the Federal Reserve, which is preparing to cut rates. The global market is standing at an unprecedented policy crossroads. Be prepared, this is not an ordinary market situation, but an ultimate stress test of traders' determination and discipline.
