Shen Wanyuan: The Federal Reserve continues to loosen interest rates, and mainstream currencies may reach new highs again

The global financial market is looking forward to the Fed’s interest rate decision on Thursday, which was completed under the eyes of everyone. The Federal Reserve’s FOMC statement: The Federal Reserve will maintain the benchmark interest rate at 0%-0.25%, in line with market expectations. As soon as the statement is released, gold, cryptocurrency, etc. Major global investment products rose in response, and mainstream currencies ended the two-day period of volatility within the 55,000-56,000 range. This morning, the highest test was the 60,000 integer mark above the 59,500 line, and then fluctuated at the 59,000 line. The overall upward momentum is not very strong , but due to the previous rush to the 61000 line and the retracement and shocks to accumulate momentum, then we obviously cannot go short blindly under such circumstances. For the time being, I personally think that the mainstream currency operation is still mainly low and long, and short orders are temporarily no rush

The influence of the Federal Reserve last night proved that this sentence is not groundless. There are really many markets that should thank Ballmer for his speech last night, including the cryptocurrency market. At 2 am yesterday, the Federal Reserve announced that it will maintain the target range of the federal funds rate. It remained unchanged at 0-0.25%, in line with market expectations. It is worth noting that this statement for the first time emphasized that inflation continued to be below 2%, which had a greater impact on the market. The three major U.S. stock indexes collectively closed up. The Dow and S&P The 500 index continued to hit a record high, and Bitcoin rose in response, directly rising from around $54,000 to above $59,500.

In fact, the market’s attitude towards the Fed was relatively pessimistic before this, especially when the outlook for this year improves and there is a high probability of turning to inflation, the Fed may adjust monetary policy or change its attitude towards raising interest rates. The Federal Reserve predicts that the rise in inflation this year will be short-lived, and it is not expected to raise interest rates until 2023. This gives the market a sense of contrast, especially last night when U.S. bond interest rates continued to rise before the U.S. stock market. case. However, everyone should not take the Fed lightly, especially among the 18 Fed officials, 7 people think that interest rates will be raised at least once this year, and 4 members expect to raise interest rates at least once in 2022. The more words, the market will react differently at that time.