Tonight, the global market is watching the Federal Reserve! At 3 a.m., they will announce whether or not to cut interest rates. Although there is a high probability of a 0.25% cut, the real drama lies in the "subtext"—it's very likely that while cutting rates, they will hint that: "That's about it, don't expect much next time."
In my opinion, the Federal Reserve is nearly at odds with itself. On one hand, it sees employment data that is somewhat weak and wants to push a bit more; on the other hand, it is fixated on inflation still well above the 2% target, afraid to loosen its grip too much. Therefore, they come up with a twisted operation: "hawkish rate cut"—they are cutting, but they must maintain a serious attitude.
The key now lies in how Powell speaks later. I estimate he will use various tactics, keeping phrases like "let's watch the data" and "act cautiously" on his lips. What's even more interesting is the internal voting—there will definitely be several people jumping out to oppose; some think the cut is too much, while others think it's too little, almost turning into a palace drama.
Additionally, keep an eye out; they might quietly restart bond purchases to inject some money into the market. In short, tonight is definitely not just about simply cutting rates; the Federal Reserve is walking a tightrope, and we will wait to see how Powell navigates this pile of rhetoric.
Brothers, a strong coin that can explode with a 10x profit is here, and I am preparing for a big wave in the upcoming market. This time, a successful all-in can definitely lead to overflowing profits; I want to witness it in the chat room.