🔴 FED'S POWELL: THE JOB IS NOT DONE ON INFLATION, BUT CAN AFFORD TO BEGIN TO DIAL BACK RESTRICTION IN THE POLICY RATE.
🔴 FED'S POWELL: IN A BASE CASE, YOU WOULD THINK POLICY RATES WOULD MOVE DOWN FROM HERE.
🔴 FED'S POWELL: UPSIDE RISKS TO INFLATION HAVE DECREASED AS THE JOB MARKET COOLS. DOWNSIDE RISKS TO EMPLOYMENT MANDATE ARE REAL NOW.
🔴 FED'S POWELL: THERE WAS A REAL DISCUSSION ABOUT THE CASE FOR REDUCING RATES AT THIS MEETING, BUT THE STRONG MAJORITY SUPPORTED NOT MOVING RATES AT THIS MEETING.
Powell sounded dovish in his speech despite the FED electing to keep rates steady yet again in July. Rate cuts are very possibly coming later this year.
How would this affect the markets? In the short term, rate cuts typically coincide with a crash in the stock market followed by strong upside action as there is more liquidity in the economy to push prices up.
If there is no rate cut this year, then I would simply focus on what the charts are saying rather than a change in monetary policy putting pressure on the markets either way.
For Bitcoin, low rates have always been bullish, and if my theory from this summer that whales would be rotating profits from bullish stocks into sideways crypto proves accurate, I still would expect a strong push into Q4 of this year.
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