#美国伊朗同意停火两周 The Federal Reserve will announce important matters today at 2:00 PM U.S. time.


Topic: Interest rate cuts + cash injection.
First, get clear on some background:
The Federal Reserve’s emergency announcement is not something they just send out casually. The last emergency announcement was in March 2020 when the COVID-19 pandemic broke out.
Before that, it was during the 2008 financial crisis.
So, the four words “emergency announcement” carry a lot of weight in the financial world—I don’t need to say more.
This time, there are two main items: interest rate cuts + liquidity injection.
Interest rate cuts indicate that the Federal Reserve believes the economy needs stimulation.
Liquidity injection indicates that liquidity needs to be replenished.
Using them together shows that the pressure they’re seeing isn’t limited to just one area.
But there’s a problem here:
Interest rate cuts are good news for the stock market, but they weaken the U.S. dollar.
Liquidity injection is good news for liquidity, but it will intensify inflation pressure.
Doing both at the same time is like simultaneously giving the economy a strong shot of adrenaline and a dose of sugar.
The short-term effect will be very obvious, and the long-term costs will also be very obvious.
Impact on the market:
Before the announcement, the market will be in a wait-and-see mode, and any positions could be wiped out.
After the announcement, regardless of the direction, volatility will surge dramatically.
$BTC $ETH $SOL
ETH4.56%
SOL1.82%
GT0.92%
View Original
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
  • Reward
  • Comment
  • Repost
  • Share
Comment
Add a comment
Add a comment
No comments