Powells Weighty Words Stocks Surge Crypto Falls Why the Delay in Rate Cuts

CoinWorld.com reports:
Fundamentals: 1. Federal Reserve Chairman Powell: Significant progress has been made on inflation, which may return to 2% by the end of next year or the following year, and the labor market remains strong; 2. ECB President Lagarde: We are very advanced in the decline of inflation; 3. Telegram app developers can convert Telegram Stars into TON tokens; 4. Important data and events this week: July 3, 20:15 U.S. June ADP Employment Numbers, 20:30 U.S. Initial Jobless Claims for the Week, July 4, 02:00 Federal Reserve releases minutes of monetary policy meeting, July 5, 20:30 U.S. June Unemployment Rate, U.S. June Nonfarm Payrolls Technical Analysis: Bitcoin: Failed to rise above 63,600 on Monday, fell back with a long upper shadow, slightly rose yesterday and closed with a bearish candle, continuing to adjust today, technical trends leaning towards bearish again. Last night, Powell stated that the U.S. labor market remains strong, with nonfarm payroll data released tonight! The daily trend has broken below the moving average support, focusing on the 60,000 daily half-year support below, with resistance still seen in the 62,400-62,800 range mentioned last night.


Ethereum: Rose sharply with a long upper shadow on Monday, slightly rose and closed with a bearish candle on Tuesday, continuing to decline today, breaking below 3380 to 3350 intraday, short-term target at 3240, operationally refer to the four-hour chart, bearish on rebound at 3410-3430. Altcoins: Previously suggested altcoins have all been profitable and exited, with 20% positions in NOT awaiting rise, no additional positions in the second warehouse for now, waiting for this market adjustment to end before striking again; mentioned earlier, people have been falling, and if it falls below 0.076 in this wave, look at 0.063!
Last night, Powell’s exact words caused a direct market decline! Powell stated that the Fed has made significant progress on inflation. However, he emphasized confidence in inflation continuing to decline to around 2% before beginning loose monetary policies. Powell expects inflation in the U.S. to remain below about 2.5% in the coming year.
When asked if the Fed might cut rates in September, Powell replied, “I wouldn’t specify any particular date now.”
Powell said the U.S. continues to have robust growth and a strong labor market, seeing substantial steps towards improving labor balance. The labor market is cooling as hoped over time. If the labor market unexpectedly weakens, the Fed will respond. Powell pointed out that inflation in the U.S. services sector is more sticky and wage-related. Powell emphasized, “We do believe policy has appropriate constraints. Seeing the impact of high rates on the housing market. Current policies are achieving the effects we want.”
Affected by Powell’s speech, the Nasdaq and S&P 500 indices rapidly rose, turning from decline to rise. As of 23:00 Beijing time, Nasdaq and S&P 500 indices rose by 0.28% and 0.08%, respectively. U.S. stocks rose, while the coin circle fell, because Powell did not give an exact time for rate cuts.
The Fed’s meeting is now just delaying time, how long can it delay? If the United States does not cut interest rates, at the current rate, their own companies will soon not be able to support them, banks will go bankrupt, and small and medium-sized enterprises will have a hard time. Just as Musk said, the interest payments on U.S. debt exceed military spending each year, becoming the largest government expenditure item. I think we are going to witness history again. The crossroads for making critical choices are getting closer, and in this financial tsunami, who is the big fish, who can laugh last, let’s wait and see!