$BTC $ETH $ZEC Japan's 7.6 magnitude earthquake 'scares' the yen to raise interest rates! Global markets are on high alert, and the Federal Reserve may issue 'hawkish rate cuts.' A rate cut of 87% is already a foregone conclusion, but how Federal Reserve Chairman Powell 'speaks' will be key.

This week, the global market welcomes the central bank's 'super week,' with the Federal Reserve's policy meeting undoubtedly being the top priority. Although a 25 basis point rate cut is almost certain, investors are concerned that this rate cut may come with hawkish signals, evolving into a 'hawkish rate cut.' The market is holding its breath, and volatility has quietly begun.

U.S. stock and bond markets move synchronously: Caution spreads

On Monday, U.S. stocks experienced a full pullback: the Dow fell 0.33%, the S&P 500 fell 0.30%, and the Nasdaq fell 0.17%. Interest rate-sensitive sectors are particularly affected, as funds choose to withdraw ahead of the Federal Reserve's decision.

Rate cut ≠ dovish! Beware of the Federal Reserve's 'face change'

The market has priced in a 87.4% probability of a rate cut, but the key lies in the subsequent guidance. Will the policy statement emphasize inflation concerns? Will the latest dot plot raise interest rate expectations? Will Powell's press conference downplay the possibility of further rate cuts? These will determine the market direction.

Some analysts warn that the current economy resembles 'stagflation,' and there may be rare divisions within the Federal Reserve. If multiple dissenting votes appear, market volatility is bound to intensify.

The yen suffers a heavy blow: The strong earthquake may force the Bank of Japan to delay rate hikes

Japan was hit by a sudden 7.6 magnitude earthquake, which not only triggered tsunami warnings but also shook the foreign exchange market. The dollar rose against the yen to 155.97. If the disaster leads to increased losses, the Bank of Japan's planned rate hike next week is likely to be postponed, with policy focus shifting towards post-disaster support.