The Asian market opened lower but quickly recovered and moved higher, with no significant follow-through with the US stocks. The impact of this Fed speech is limited; it's already in the past.


The Fed dot plot is based on historical data; over the past three months, due to residual tariffs and rising oil inflation, the expectation of rate cuts has shifted from 1-2 times this year to no cuts this year.
As oil prices decline and tariffs become history, the expectation of rate cuts will also reverse from no cuts this year to 1-2 rate cuts within the year.
Wosh clearly understands this well; the dot plot is used as a political tool to FUD the Republican Party. The Fed doesn't care whether it maintains or cuts rates; as long as it keeps showing hawkish signals on the future dot plot, it can continuously pressure Trump. So, they simply cancel the dot plot.
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
  • Pinned