🔥Tonight the global market faces life-and-death: Behind the Fed's 'fake rate cut' lies a hidden hawkish trap 🚨
Rate cut by 25 basis points? The market has seen through it. The real bomb tonight is: The credibility of the Fed may collapse.
On one hand, cutting rates, on the other hand, intimidation—Wall Street calls this act 'rate cut, but shut up'. With the third consecutive rate cut, it appears to offer a candy, but core inflation cannot be suppressed, and internal chaos ensues. Powell will undoubtedly make a strong statement tonight: The easing stops here, and future ammunition has been exhausted.
This is called 'hawkish rate cut', a dangerous game of exchanging the future for the present.
But the market has already stopped buying it.
Strange signals have already leaked: The yield on 10-year U.S. Treasuries soared unusually before the rate cut, as if screaming 'I don’t trust you anymore'.
Why? Trump has already made it clear—The next Fed chair must be a 'submissive rate cutter'. The top contender, Hassett, is the 'political card' dove.
The world's largest hedge fund, Man Group, warns: If the new chair is seen as a White House puppet, the bond market will respond directly with a sell-off, violently pushing up long-term rates.
The result? The only way out: Restart QE, fire up the money printing machine to hard-press rates.
Think about the UK in 2022: A bloodbath in government bonds, once national credit is broken, the cost of borrowing will never return.
What does this mean for ordinary people's accounts?
· Short term: The stock market may hype up before crashing; be careful as Powell's words can change everything in an instant.
· Trend: Shorting the dollar will become consensus; the bond market becomes a minefield, and yields may soar above 5%.
· Hedge scenario: Bitcoin and gold are entering a golden age—diminished currency credibility + QE expectations, that’s their strongest narrative.
Tonight is not just the end of a cycle.
This is the beginning of the collapse of 'monetary faith'.
Buckle up, the market is about to switch to chaos mode.
