The Federal Reserve's annual climax has just concluded, and Powell really pulled out all the stops this time—three consecutive rate cuts, with this cycle totaling a 75 basis point reduction, bringing the federal funds rate directly to the 3.5%-3.75% range. Did the market expect a cheer? Not quite. Trump immediately expressed dissatisfaction: "Is that all? It should be doubled!"
This old drama is playing out again—who really calls the shots? Let’s break down the details.
First, let's talk about the signals from this meeting. The rate cut roadmap is actually quite clear: borrowing costs are heading downward, and Powell himself admitted that the policy is "roughly in place," providing solid insurance for the economy. He also specifically mentioned AI technology—this tool is transforming production efficiency, implying the easing environment could last even longer.
But then he switched gears, leaving a backup plan. Core PCE inflation still hovers around 2.8% and hasn't come down. If tariffs are truly implemented, price pressures could persist long-term. More importantly, the phrase "assessed at each meeting" is very clear: don’t expect me to spoil the next move in advance.
The market’s instincts are quite sharp; everyone is interpreting this as a "mild dovish signal," even hawkish members who usually oppose are nodding in agreement.
⚠ Honestly speaking, This article is just here to clarify policy context and its potential impact on the market, not to give trading signals. Markets can change suddenly—it's safest to make your own decisions.
Here's a question for everyone: In this game of chess, do you think Powell's rate cuts are more influential, or is Trump's pressure more likely to shake things up? Or are you more concerned about how Trump might adjust the Federal Reserve's personnel in the future?
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GateUser-beba108d
· 12-12 18:57
A 75 basis point rate cut sounds great, but it still has to fall once tariffs are implemented. Powell's move doesn't seem to be causing much pain.
View OriginalReply0
LiquiditySurfer
· 12-11 12:30
Expectations of interest rate cuts are nothing new; the key still depends on whether liquidity can actually flow in. Otherwise, it’s just an illusion of prosperity on paper.
View OriginalReply0
GasFeeSobber
· 12-10 21:50
Cutting interest rates by 75 basis points sounds great, but once tariffs come into play, it's all for nothing. This is the classic trick of American politics.
View OriginalReply0
MEVEye
· 12-10 21:48
Even with such aggressive rate cuts, it still depends on Trump's mood. Truly remarkable... The crypto circle has been eagerly waiting for this liquidity dividend, but now we have to gamble on political cards again. Quite the rollercoaster.
View OriginalReply0
NFTArchaeologis
· 12-10 21:44
Instead of staring at Powell and Trump’s clashes, ask yourself how long the chips in your hand can sustain the next policy reversal. History has shown that the biggest beneficiaries of power struggles are often not the spectators.
ETH, BNB, and ASTER holders, take note!
The Federal Reserve's annual climax has just concluded, and Powell really pulled out all the stops this time—three consecutive rate cuts, with this cycle totaling a 75 basis point reduction, bringing the federal funds rate directly to the 3.5%-3.75% range. Did the market expect a cheer? Not quite. Trump immediately expressed dissatisfaction: "Is that all? It should be doubled!"
This old drama is playing out again—who really calls the shots? Let’s break down the details.
First, let's talk about the signals from this meeting. The rate cut roadmap is actually quite clear: borrowing costs are heading downward, and Powell himself admitted that the policy is "roughly in place," providing solid insurance for the economy. He also specifically mentioned AI technology—this tool is transforming production efficiency, implying the easing environment could last even longer.
But then he switched gears, leaving a backup plan. Core PCE inflation still hovers around 2.8% and hasn't come down. If tariffs are truly implemented, price pressures could persist long-term. More importantly, the phrase "assessed at each meeting" is very clear: don’t expect me to spoil the next move in advance.
The market’s instincts are quite sharp; everyone is interpreting this as a "mild dovish signal," even hawkish members who usually oppose are nodding in agreement.
⚠ Honestly speaking,
This article is just here to clarify policy context and its potential impact on the market, not to give trading signals. Markets can change suddenly—it's safest to make your own decisions.
Here's a question for everyone: In this game of chess, do you think Powell's rate cuts are more influential, or is Trump's pressure more likely to shake things up? Or are you more concerned about how Trump might adjust the Federal Reserve's personnel in the future?
Share your thoughts in the comments!