The US dollar interest rate cut by 50 basis points!
Did it slap many people in the face?
How do you plan to explain this now?
If you watched the press conference by Federal Reserve Chairman Powell in the early morning, you wouldn't think so.
It's quite clear that Powell was actually angered, which shows that the interest rate cut was not their wish.
So why did they still cut rates?
And why by 50 basis points?
Many have said in recent days that if the US dollar cuts rates, it would be a slap in the face, and they're waiting to see how you explain it.
What's there to explain?
Anyone with a bit of common sense knows that the US dollar interest rate cut is a very difficult choice, even the Federal Reserve itself has been flip-flopping and can't explain it themselves.
What's there for us bystanders to explain?
More importantly, as we have been discussing these days, the US dollar interest rate cut is no longer an economic issue, it has completely transformed into an internal struggle within the United States.
If they cut rates in advance in September, it can only mean that some Americans have lost in the struggle.
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Until the very last moment, those Americans in the struggle don't know the outcome, so how can they demand that we spectators accurately predict the result?
What really needs to be explained is the experts who have been saying that the US economy is doing well and doesn't need an interest rate cut, it's the Federal Reserve and Powell.
We have always said that the US dollar interest rate cut depends on two things: one is the signal of a recession in the US economy, and the other is the result of the internal struggle in the United States, there's nothing wrong with that.
Additionally, as we mentioned earlier, in the press conference in the early morning, Powell was angered.
Did you see his uncontrolled expressions and language?
Powell is a legal expert, always calm and composed.
Over the past two years of raising rates, no matter how difficult the situation or the pressure, he has never lost his composure.
This time, with the rate cut, the weight on his heart has been lifted, and yet he has lost his composure.
Why do you think that is?
This can only indicate that the big shots behind the Federal Reserve did not want to cut rates, but now they have to, which can only mean that the Federal Reserve's top brass, led by Powell, are incompetent, they couldn't hold their ground!
Powell may have already been criticized, and now he has to announce this decree, feeling like he's being roasted over a fire.
The result is that the early morning press conference turned into a debate, with Mr. Powell arguing with the journalists.
Throughout the press conference, Powell was grilled by the journalists from all angles, all questions were doubts, Powell made up various lies, and in the end, he left with a phrase, the US economy shows no signs of recession from any perspective.
Since the US economy has not entered a recession, why did you cut rates?
Powell stubbornly said, we are firmly committed to supporting maximum employment and restoring inflation to the 2% target.
At this point, he still didn't forget to mention the 2% inflation target.
But has inflation dropped to 2%?
Some say the Federal Reserve has said that they can't wait for inflation to drop to 2% before cutting rates, it would be too late, the Federal Reserve's target might be around 2.2%.
But now it's not even at 2.2%, in August, the core inflation rebounded slightly from 0.2% to 0.3%.
This small rebound in data probably made Powell very nervous.
The Federal Reserve is not responsible for economic recession, but they must be responsible for inflation, because the economy is a matter for the US government, and inflation is essentially a monetary phenomenon.
So, the conclusion is that the Federal Reserve was forced to cut rates with a knife to their neck, and there are two knives.
The first knife is the concern about economic recession.
Don't look at the Americans playing with data very smoothly, their mouths are also very tough, but they must be very clear in their hearts that the threat of economic recession is always there, even if there is no recession, in case of stagflation, it's enough for them to drink a pot.
If you only look at the economic data released by the Americans, the economic recession has not really come yet, it is still struggling, but what about the real data?
We don't know, they must be very clear in their hearts.
The second knife is the internal struggle in the United States.
The internal struggle in the United States is currently very intense and chaotic, and everyone is unclear.
If you look at the most essential thing, it is still the pot of the US election.
A few days ago, we said that if the rate cut was advanced in September, it would mean that the Jewish financial group had made up their minds to fully support the Democratic Party and Harris, everyone knows that an early rate cut is beneficial to the Democratic Party, even Trump has said it personally.
No matter how the US media blows for the Democratic Party, the fact that Harris has a gap compared to Trump is a fact, why does the Jewish financial group still insist on supporting Harris?
Now the result is out, the Jewish financial group has made up their minds, no longer wavering, so the US dollar has cut rates.
The next question, why is it 50 basis points?
We have long said that the Federal Reserve either does not cut rates, or cuts at least 50 basis points.
Yesterday we said that a 25 basis point rate cut does not meet market expectations, 50 basis points does.
So as long as they cut rates, they will not do things that undermine themselves, but will only benefit the US financial market.
On the other hand, since the rate cut has been made, a 25 basis point cut is just a small grenade, it can't test the market's reaction at all, 50 basis points is the bomb thrown down.
Someone asked, the rate cut has been made, what about the Sino-US financial war?
How to continue?
Before this, both sides were holding back, now that the US dollar has cut rates, it means the game has started, both sides are racing against time to see who is faster, more accurate, and more ruthless.
So, can we win?
Don't ask this kind of question in the future, the financial war is a protracted war, no matter who is the final winner, both sides are battered, haven't you seen the result of the 8-year resistance war?
The loser collapses directly, and the winner is also a hard-fought victory.
The Americans are too unscrupulous in doing this, it's a typical act that harms others without benefiting oneself.