Hassett criticizes harshly! Don't think you can copy the answers for the future interest rate path, Powell's 'hawkish rate cut' drama is about to start!
Just now, Kevin Hassett, the director of the White House National Economic Council, made a statement saying that if the Federal Reserve dares to announce its interest rate plans for the next six months in advance, it would be 'irresponsible'.
My view is very clear: At tomorrow's early morning meeting, a 25 basis point rate cut is basically a done deal. But don't get too excited, this may very well be a 'hawkish rate cut'. While Powell gives you a candy with the rate cut, he will certainly have a stern face saying, 'The future depends on the data; we might be done here.' The purpose is to suppress the market's fantasy of crazy rate cuts next year and to appease those hawkish officials who are worried about inflation.
What impact does this have on the crypto market? Don't expect a flood of liquidity!
In the short term, it might be 'buy the expectation, sell the fact': the news of the rate cut has long been digested by the market, so be careful that the positive news could lead to a reversal in market trends.
The key lies in the 'dot plot': more important than the rate cut itself is the Federal Reserve officials' predictions for future interest rates. If it shows only one or two rate cuts by 2026, that would be unexpectedly hawkish, and risk assets could be under pressure.
The real lifeline is 'liquidity': what can truly make Bitcoin soar is not the meager interest from a rate cut, but whether the Federal Reserve will restart 'money printing'.
What should retail investors do? Remember these three points!
Don't chase highs: If the news leads to a violent surge, don't let your excitement push you in impulsively; it can be very easy to get caught holding the bag.
Control your positions: In such volatile markets, going all in is like gambling. Only play with funds that you won't mind losing.
Keep an eye on the dollar: If the dollar index strengthens due to hawkish signals, it usually isn't good for cryptocurrencies.
What retail investors should do is 'patiently wait for opportunities and act decisively and accurately'. Pay attention to leaders and come to the village to receive daily shared real-time strategies + stop-loss guidelines!