Yujie He @hyjbrighter: "🚨 𝗙𝗲𝗱 𝗚𝗼𝗲𝘀 𝗔𝗴𝗴𝗿𝗲𝘀𝘀𝗶𝘃𝗲: 𝗠𝗼𝗿𝗲..."

Ireland

🚨 𝗙𝗲𝗱 𝗚𝗼𝗲𝘀 𝗔𝗴𝗴𝗿𝗲𝘀𝘀𝗶𝘃𝗲: 𝗠𝗼𝗿𝗲 𝗥𝗮𝘁𝗲 𝗖𝘂𝘁𝘀 & 𝗜𝗻𝗳𝗹𝗮𝘁𝗶𝗼𝗻 𝗛𝗲𝗮𝗱𝘄𝗶𝗻𝗱𝘀 𝗔𝗵𝗲𝗮𝗱! 🚨 The Federal Reserve just wrapped up its latest meeting, and the big news isn't just a rate cut – it's an aggressive path of future cuts, signalling more easy money and potentially higher inflation. This move has the market buzzing, so let's break down what it means for your money! 📊 𝗘𝗰𝗼𝗻𝗼𝗺𝗶𝗰 𝗣𝗿𝗼𝗷𝗲𝗰𝘁𝗶𝗼𝗻𝘀: 𝗔 𝗠𝗶𝘅𝗲𝗱 𝗕𝗮𝗴 The Fed's updated Summary of Economic Projections (SEP) reveals some key shifts. They've nudged their GDP growth forecast for this year slightly upwards from 1.4% to 1.6%. However, the unemployment rate is still projected to end 2025 at 4.5%, up from the current 4.3%, indicating an expected weakening labor market. On the inflation front, PCE inflation is still projected to end the year at 3.0%, unchanged from June, and higher than the current 2.6%. Core PCE inflation, which excludes volatile food and energy prices, is also expected to accelerate, ending the year at 3.1% (up from 2.9% currently). In essence, the Fed anticipates inflation will worsen before it gets better. 📉 𝗧𝗵𝗲 𝗥𝗮𝘁𝗲 𝗖𝘂𝘁 𝗥𝗼𝗮𝗱𝗺𝗮𝗽: 𝗧𝘄𝗼 𝗠𝗼𝗿𝗲 𝗼𝗻 𝘁𝗵𝗲 𝗛𝗼𝗿𝗶𝘇𝗼𝗻! Get ready for more action! The Fed's latest forecast now anticipates two more interest rate cuts this year – one in October and another in December. This is a significant shift from their June projection, which foresaw only one more cut. The driving force behind this aggressive easing? Concerns about the labor markets. The market seems to be on board, with the CME Fed Watch tool showing the odds of two more cuts jumping from 65.9% to 82.6% after today's information. 🗣️ 𝗣𝗼𝘄𝗲𝗹𝗹'𝘀 𝗥𝗮𝘁𝗶𝗼𝗻𝗮𝗹𝗲: 𝗙𝗼𝗰𝘂𝘀𝗶𝗻𝗴 𝗼𝗻 𝗝𝗼𝗯𝘀, 𝗡𝗼𝘁 𝗝𝘂𝘀𝘁 𝗣𝗿𝗶𝗰𝗲𝘀 Why cut rates when inflation is expected to accelerate? Powell explicitly stated the Fed's focus is now more on the labor markets than on inflation, citing their "dual mandate" of maximum employment and price stability. He acknowledged that inflation could remain higher than previously expected, with the 2% target not being met until 2028. Powell explained that the risks of "higher and more persistent inflation have probably become a little less" since April, partly due to a softened labor market and slowed GDP growth. 🛣️ "𝗔 𝗣𝗿𝗼𝗰𝗲𝘀𝘀, 𝗡𝗼𝘁 𝗝𝘂𝘀𝘁 𝗢𝗻𝗲 𝗖𝘂𝘁": 𝗪𝗵𝗮𝘁'𝘀 𝗡𝗲𝘅𝘁? Don't expect just one magic bullet. Powell emphasized that a 0.25% interest rate cut isn't just about today; it's "about the process" and "just the beginning" of a series of cuts. He reiterated that the Fed is on a "meeting-by-meeting" and "data-dependent" path, not a preset course. When asked about larger, 0.5% cuts, Powell indicated these would only be warranted if policy was "out of place" or in an "emergency situation," which he believes is not the case now. He feels the current policy has been doing the "right thing". 😬 𝗧𝗵𝗲 𝗦𝘁𝗼𝗰𝗸 𝗠𝗮𝗿𝗸𝗲𝘁 𝗠𝗲𝗹𝘁-𝗨𝗽 𝗖𝗼𝗻𝗰𝗲𝗿𝗻: 𝗙𝗲𝗱 𝗜𝘀𝗻'𝘁 𝗪𝗼𝗿𝗿𝗶𝗲𝗱 (𝗬𝗲𝘁)! A critical question arose: Is cutting rates when the stock market is at all-time highs risking a "melt-up" or even a bubble? Powell stated the Fed monitors financial stability "very, very carefully". While acknowledging it's a "mixed picture," he believes households and banks are in good shape, and "structural vulnerabilities" in financial assets are "not elevated" right now. Essentially, the Fed isn't holding back on cuts due to current stock market levels, focusing intently on their dual mandate. 💡 𝗙𝗲𝘄 𝘄𝗼𝗿𝗱𝘀 𝗳𝗿𝗼𝗺 𝗬𝘂𝗷𝗶𝗲: In the last quarter of 2025, prepare for a prolonged easing cycle that may support markets yet sustain price pressures. Stay resilient by diversifying across assets and geographies. Balance growth opportunities with protection to secure long-term potential of investment gains $SPX500 $NSDQ100 $META (Meta Platforms Inc) $BABA (Alibaba-ADR)

Not investment advice. The author may have financial interests in the mentioned instruments.