At three o'clock in the morning, the Federal Reserve is about to announce its interest rate decision. This time, a 25 basis point rate cut is basically a foregone conclusion. The real key is Powell's speech afterwards.
What he says, what words he uses, will be scrutinized by the market with a magnifying glass.
If he hints that "after this cut, it will stop," the market may take a hit.
If he leaves an opening for continued easing in the future, then the crypto market will have something to play with.
In the previous rate cut in October, Powell warned that inflation might rebound and emphasized that December's actions were "far from certain," causing a lot of confusion in the market.
Now, inflation data has shown some slowdown, but the job market is inconsistent. Coupled with fiscal policy and tariffs, there are a lot of external factors causing chaos. The Fed is also feeling its way across the river.
Here's a prediction: Powell may lean dovish this time, which would be a short-term positive for the market, and the crypto and stock markets might get lively for a while.
But don't forget, Japan might raise interest rates on December 19, which would be another variable.
In short, those seeking stability shouldn't rush tonight. Wait for the news to come out, especially after Powell finishes speaking. Once the market direction becomes clear, it's not too late to follow the trend.
In the face of such major events, not losing money is already a profit.
