🔥 KEVIN WARSH “COLD WATER” AND BOLSTERS EXPECTATIONS THAT THE FED WILL SOON EASE
Last night’s meeting showed that Kevin Warsh’s stance on inflation remains fairly firm:
1️⃣ Recent data has not clearly indicated any real improvement. The Fed remains steadfast in its goal of bringing inflation down from 3.4% to 2%.
2️⃣ The Fed believes there is still a lot to be done and it cannot ease policy unless inflation falls enough.
3️⃣ Even though interest rates are high, the U.S. economy is still in good health: consumption is stable, the labor market remains solid, and the unemployment rate is low. This means the Fed is not under much pressure to cut rates early.
4️⃣ Business investment is growing the fastest since 2021, with nearly 50% of capital flowing into AI.
5️⃣ However, Warsh also shows more caution toward the current wave of AI investment.
👉 Overall, Kevin Warsh is dismissing expectations that the Fed will easily loosen its inflation target. This view runs counter to Trump’s desire to lower interest rates and is somewhat similar to Powell’s cautious approach.
📉 What does this mean for traders?
If interest rates continue to be kept at high levels:
• The USD and bond yields may receive support.
• Gold, silver, Bitcoin, and Altcoins may face selling pressure or strong volatility.
• Stocks, especially the high-valued AI sector, could be vulnerable to profit-taking.
• The market will be more sensitive to each upcoming inflation and jobs data release.
Right after the speech, financial markets reportedly shook sharply across the board, with nearly USD 2.5 trillion in market value said to have “evaporated” from gold, silver, equities, and crypto.
⚠️ During this period, brothers, limit FOMO,
Last night’s meeting showed that Kevin Warsh’s stance on inflation remains fairly firm:
1️⃣ Recent data has not clearly indicated any real improvement. The Fed remains steadfast in its goal of bringing inflation down from 3.4% to 2%.
2️⃣ The Fed believes there is still a lot to be done and it cannot ease policy unless inflation falls enough.
3️⃣ Even though interest rates are high, the U.S. economy is still in good health: consumption is stable, the labor market remains solid, and the unemployment rate is low. This means the Fed is not under much pressure to cut rates early.
4️⃣ Business investment is growing the fastest since 2021, with nearly 50% of capital flowing into AI.
5️⃣ However, Warsh also shows more caution toward the current wave of AI investment.
👉 Overall, Kevin Warsh is dismissing expectations that the Fed will easily loosen its inflation target. This view runs counter to Trump’s desire to lower interest rates and is somewhat similar to Powell’s cautious approach.
📉 What does this mean for traders?
If interest rates continue to be kept at high levels:
• The USD and bond yields may receive support.
• Gold, silver, Bitcoin, and Altcoins may face selling pressure or strong volatility.
• Stocks, especially the high-valued AI sector, could be vulnerable to profit-taking.
• The market will be more sensitive to each upcoming inflation and jobs data release.
Right after the speech, financial markets reportedly shook sharply across the board, with nearly USD 2.5 trillion in market value said to have “evaporated” from gold, silver, equities, and crypto.
⚠️ During this period, brothers, limit FOMO,
