Yujie He @hyjbrighter: "🚨 𝗥𝗮𝘁𝗲 𝗖𝘂𝘁𝘀 𝗔𝗥𝗘 𝗟𝗼𝗰𝗸𝗲𝗱..."

Ireland

🚨 𝗥𝗮𝘁𝗲 𝗖𝘂𝘁𝘀 𝗔𝗥𝗘 𝗟𝗼𝗰𝗸𝗲𝗱 𝗜𝗻. 𝗠𝗼𝗻𝗲𝘆 𝗣𝗿𝗶𝗻𝘁𝗲𝗿𝘀 𝗔𝗿𝗲 𝗪𝗮𝗿𝗺𝗶𝗻𝗴 𝗨𝗽! 🚨 The Federal Reserve is setting the stage for a period of "easy money" according to recent insights following Chair Jerome Powell's remarks at the NAB conference in Philadelphia this week. Powell stated that the Fed’s outlook on employment and inflation has "not appear[ed] to have changed much" since their September meeting. This lack of change signals a strong commitment to their earlier projections. 📉 𝗥𝗮𝘁𝗲 𝗖𝘂𝘁𝘀 𝗜𝗺𝗺𝗶𝗻𝗲𝗻𝘁: Based on the September projections, the Fed is expected to cut interest rates twice by the end of the year. The current federal funds interest rate is 4.25%. 1. October 29th Meeting: A 0.25% interest rate cut is highly likely. The CME Fed Watch tool currently shows a 97.8% chance of this occurring. 2. December Meeting: A second 0.25% cut is projected. The market sees a 92.8% chance that the Fed will enact this cut on December 10th. These cuts would bring the Fed funds interest rate down to the projected 3.75% range by year-end. This move towards easier money is anticipated to serve as a tailwind for the stock market and for precious metals. 🔥 𝗧𝗵𝗲 𝗘𝗻𝗱 𝗼𝗳 𝗧𝗶𝗴𝗵𝘁𝗲𝗻𝗶𝗻𝗴 𝗮𝗻𝗱 𝘁𝗵𝗲 𝗦𝘁𝗮𝗿𝘁 𝗼𝗳 𝗤𝗘?? Following interest rate cuts, the next phase of the Fed’s "obvious playbook" involves stopping Quantitative Tightening (QT), which is the process of "suck[ing] money out of the system." Powell suggested that this balance sheet runoff—which has reduced the balance sheet by 2.2 trillion since June 2022—may approach its end point in "coming months." But the long-term warning is clear: The Fed is predicted to be "warming up the money printers" for Quantitative Easing (QE)—or balance sheet expansion. Analysts predict that massive money printing could start in 2026. Previous crises required extraordinary measures: ≈$4 trillion was printed during the Great Financial Crisis (GFC), followed by another ≈$5 trillion during the pandemic. 🥇 𝗜𝗻𝗳𝗹𝗮𝘁𝗶𝗼𝗻 𝗮𝗻𝗱 𝘁𝗵𝗲 𝗚𝗼𝗹𝗱 𝗦𝗶𝗴𝗻𝗮𝗹 : Continued money printing necessitates a greater amount of QE in every subsequent crisis, leading to more monetary inflation. • Gold as a Hedge: Precious metals are already reacting. Gold has acted as an inflation hedge, increasing by 60% year to date. The ability of the Fed to print dollars—something they cannot do with gold—means more money printing leads to more devalued dollars required to buy an ounce of gold. • Powell's Silence: When asked about the "alarming rise in gold prices", Powell declined to comment, stating that the Fed views inflation as driven by "fundamental supply and demand factors." 💸🏦 The current period is characterized as the "great meltup," a process where continued central bank actions are driving asset price inflation. More investors would continue allocating capital into assets to benefit from price inflation.📈📈 $NSDQ100 $SPX500

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

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NSDQ100

NASDAQ100 Index (Non Expiry)

SPX500

SPX500 Index (Non Expiry)

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