
Biteye|Apr 07, 2025 06:27
The Federal Reserve may not be in a hurry to rescue the market, focusing on whether BTC 74500 can withstand it? 🙏
The editor glanced at the market this morning and fainted, only to wake up now.
What everyone is most looking forward to now is having the Federal Reserve or Trump to drag the bottom. But this may not come so quickly.
Some people believe that Trump is currently intentionally creating stock market chaos, cracking down on the Democratic Party's old money power, and creating more space for his own subsequent operations.
Bloomberg Chief US Economist Anna Wong believes that the Federal Reserve will not act so quickly this time. There are several reasons for this:
Market expectations are too optimistic: People think the Federal Reserve will cut interest rates five times, but the Fed is actually still watching and feels that it is too early to take action now.
Worried about a repeat of 2022: If inflation rises again, the Federal Reserve is afraid of being criticized for not taking action, so it would rather let the market fall first than rush to save it.
Wall Street's inflation forecast is on the high side: many major banks predict that PCE will rise to 4-5%, and the Federal Reserve is even more hesitant to act rashly upon seeing this.
Data lag: The decline in employment will not be apparent until the third or fourth quarter, but the rebound in inflation data will come out faster, and the Federal Reserve will have to wait for the confirmation of "hard data" to feel at ease.
Powell wants to leave his name: he hopes to be seen as the "inflation terminator" Volcker of the past and does not want to easily switch to dovish.
Historical reference: Now it's more like the 1970s and 1980s, when the Federal Reserve waited until the economy was poor and inflation was suppressed before cutting interest rates.
What do you think the market will do next? The editor suggests watching more and moving less, and it's not too late to make a move after the K-line has ended its bearish position.
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