The Federal Reserve is stubborn and soft-spoken
Keep inflation under control,
For the Federal Reserve, the policymaker,
Not only is it as simple as raising interest rates without a bottom line,
Another critical point is to control expectations of interest rate hikes.
Is the Federal Reserve stubborn and soft-spoken?
In fact, as a senior official of the Federal Reserve,
It's impossible for Powell and his staff not to know,
The rebound in CPI exceeded expectations,
The main reason is the rise in energy prices.
And energy prices have been rising since mid-July.
Basically, it is related to OPEC+'s extended production measures.
Another set of important data, Core CPI, portrays a different landscape.
After excluding volatile energy and food prices, Core CPI
Actually, it was in line with expectations.
Continuing to raise interest rates to curb inflation is not a very clear practice.
After all, at this stage,
the rise in prices,
The problem is no longer considered to be on the demand side,
It's the supply side.
On the demand side,
The Federal Reserve's aggressive interest rate hike is already working.
The rise in prices for relatively large houses has abated a lot.
The Federal Reserve's rhetoric is hard and soft,
It's a matter of course.
It will also continue to be this way.
Until the price index CPI returns to a normal range of fluctuations,
That's 2-3%,
At that time, the Federal Reserve may change its attitude.
Otherwise, the transition will occur too soon,
It will only kill the efforts and price control policies of the past year and a half.
In September, the FOMC decided not to raise interest rates.
In line with market expectations,
However, the bitmap of the eagle wind gusts,
It shows that the possibility of raising interest rates again at the end of the year has increased.
But if you look closely at the dot matrix,
This is already the case in people's predictions for June.
It's because the market is overinterpreting it.
After all, when the stock market is recovering,
Any kind of hustle and bustle would be interpreted as a war between plants and trees.
As for 2024,
The bitmap did downplay the expectations of the number and intensity of interest rate cuts.
It's probably also for this reason,
The market entered a deeper correction.
The next FOMC will announce interest rate hikes on November 1 and December 13.
At that time, the market will once again fluctuate.
For the Federal Reserve, the policymaker,
Not only is it as simple as raising interest rates without a bottom line,
Another critical point is to control expectations of interest rate hikes.
Is the Federal Reserve stubborn and soft-spoken?
In fact, as a senior official of the Federal Reserve,
It's impossible for Powell and his staff not to know,
The rebound in CPI exceeded expectations,
The main reason is the rise in energy prices.
And energy prices have been rising since mid-July.
Basically, it is related to OPEC+'s extended production measures.
Another set of important data, Core CPI, portrays a different landscape.
After excluding volatile energy and food prices, Core CPI
Actually, it was in line with expectations.
Continuing to raise interest rates to curb inflation is not a very clear practice.
After all, at this stage,
the rise in prices,
The problem is no longer considered to be on the demand side,
It's the supply side.
On the demand side,
The Federal Reserve's aggressive interest rate hike is already working.
The rise in prices for relatively large houses has abated a lot.
The Federal Reserve's rhetoric is hard and soft,
It's a matter of course.
It will also continue to be this way.
Until the price index CPI returns to a normal range of fluctuations,
That's 2-3%,
At that time, the Federal Reserve may change its attitude.
Otherwise, the transition will occur too soon,
It will only kill the efforts and price control policies of the past year and a half.
In September, the FOMC decided not to raise interest rates.
In line with market expectations,
However, the bitmap of the eagle wind gusts,
It shows that the possibility of raising interest rates again at the end of the year has increased.
But if you look closely at the dot matrix,
This is already the case in people's predictions for June.
It's because the market is overinterpreting it.
After all, when the stock market is recovering,
Any kind of hustle and bustle would be interpreted as a war between plants and trees.
As for 2024,
The bitmap did downplay the expectations of the number and intensity of interest rate cuts.
It's probably also for this reason,
The market entered a deeper correction.
The next FOMC will announce interest rate hikes on November 1 and December 13.
At that time, the market will once again fluctuate.
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