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4E: The Fed keeps interest rates unchanged, slows down the process of shrinking its balance sheet, and injects liquidity into the market. US stocks and the crypto market both increase.

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Followin' the Fed's decision to keep policy rates unchanged, in line with market expectations. At the same time, it announced a significant reduction in the pace of balance sheet contraction (QT), helping to alleviate liquidity pressures. Chairman Powell reassured investors that recession risks are not high, the US economy remains strong, and the labor market is stable. Observin' by 4E, the Fed's moderate stance has driven risky assets. On Wednesday, all three major US stock indices rose: S&P 500 up 1.08%, Dow Jones up 0.92%, and Nasdaq up 1.41%. Technology stocks led the gains, with Tesla up 4.68% and Nvidia up 1.81%. The cryptocurrency market has seen a strong recovery, with Bitcoin continuin' to fluctuate upward, led by technology stocks, touchin' $87,453 before a slight adjustment to $85,866 at the time of writing, up 3.6% in 24 hours. Other major tokens also saw across-the-board price increases, with Ethereum regainin' the $2,000 mark, while XRP rose more than 11% as the SEC withdrew its appeal against Ripple. In the foreign exchange and commodity markets, the US dollar index surged but narrowed its range after the Fed's decision to hold rates, closin' the session up 0.21%. WTI oil prices rose 0.39%, while spot gold set new records for two consecutive days, touchin' nearly $3,052 durin' Powell's press conference. Durin' the press conference, Powell acknowledged that Trump's economic policies have created a high degree of uncertainty for the US economy but emphasized that the Fed is in no hurry to change its monetary policy. The updated "dot plot" shows the Fed expects to cut rates twice this year, consistent with the December forecast. At the same time, the Fed's latest economic projections lowered GDP growth but raised inflation forecasts, reflectin' a "stagflation" trend. eeee.com, a financial platform supportin' cryptocurrencies, stock indices, gold, commodities, and foreign exchange, recently launched its Earn stablecoin USDT product with an annual yield of 8%, providin' investors with a potential hedgin' option. 4E recommends that you pay attention to market volatility risks and allocate your assets reasonably.

Disclaimer: The content above is only the author's opinion which does not represent any position of Followin, and is not intended as, and shall not be understood or construed as, investment advice from Followin.
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