The Federal Reserve (FED) "changes its tune"! Interest rate cut delayed, global markets are in turmoil.


Last night, the Federal Reserve (FED) announced a major decision adjustment without any warning, instantly dropping a bombshell in the global financial markets. As soon as the news broke, the market was in an uproar, investors were on edge, hardly daring to breathe, anxiously waiting for the worst possible scenario.
Previously, as soon as Trump mentioned increasing tariffs on automobiles, the market reacted violently, without any warning. The U.S. stock market turned completely negative, with the Nasdaq index falling by 2%, suffering a severe setback. However, the U.S. dollar and U.S. Treasury bonds rose against this backdrop of gloom, with prices climbing steadily. Meanwhile, gold prices and China's Shanghai Composite Index maintained a fluctuating trend for several consecutive days. On the surface, it seemed calm, but beneath it lay turbulent undercurrents, like an unsettling calm before a storm, making the market's future direction uncertain and difficult to grasp.
Currently, the impact of economic data on the market is gradually diminishing, and market attention is starting to focus on more subtle and detailed changes. The internal attitude of The Federal Reserve (FED) has also undergone a dramatic shift. Previously, Powell had firmly stated that the inflation issues triggered by tariffs were still under control, but other officials have continuously come forward with completely different voices, warning that the inflation situation remains stubborn, and the underlying problems are intricate and far more complex than imagined. There are serious divisions within The Federal Reserve (FED), with one side trying to soothe market sentiment while the other continually sends out strong signals that the inflation issues are far from resolved.
Just this week, the Federal Reserve (FED) made a 180-degree turn in its stance on interest rate cuts, changing from its initial declaration of "not in a hurry to cut rates" to stating that "there won't be any rate cuts for a long time." Even Federal Reserve officials have publicly stated that perhaps they will only consider rate cuts when the economy falls into a greater dilemma.
This undoubtedly means that the key regulatory tool of interest rate cuts has been elevated to the level of addressing a "major crisis." Future adjustments in financial policy will become more prudent, and each step may have far-reaching effects on the global economy and financial markets, causing a ripple effect.
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