🔥A CORNERED CENTRAL BANK IS THE MOST DANGEROUS ANIMAL ON WALL STREET🔥

🎯After Powell, for the first time since his fights with Trump, publicly accused him of being behind the investigation that was set up against him:

👉HE WILL MAKE STATEMENTS after the INTEREST RATE DECISION on 28/01

▫️Let us remember that, in light of such a scandal, former FED presidents, including Bernanke and Greenspan, warned through a JOINT letter that this resembles more an emerging markets scenario than that of the U.S.

▫️Strategists like those from TD Securities suggest that Powell/the FED could react by being MORE TOUGH and COMBATIVE, not more flexible as Trump wants

▫️Moreover, considering that the GDP data was revised with a GREAT GROWTH of 4.8%, higher than expected, the chances of cutting the rate on the 28th are only 2.8%

How could the financial markets react⁉️

1- If Powell has a HAWKISH tone (against cutting the rate), #Bitcoin and stocks could fall

2- If he has a tone that does not suggest rate cuts but comments that they will INCREASE the BOND PURCHASE (for now $40B per month), the markets could react neutrally/positively

3- If Powell has a tone favoring cuts, the markets could react strongly upward, but it is unlikely

📍In summary, for now, the next and only rate cut of the year is expected on June 17

📍If the number of cuts expected by the markets increases after the rate decision, the markets could rise due to expectations of more easing