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Powell warns in
: What is the Fed hiding behind keeping rates unchanged?
The market celebrated... but something doesn't add up. The Federal Reserve kept rates stable, but behind the scenes...
On Wednesday, Wall Street closed with moderate gains following the Fed's expected announcement. However, Chairman Jerome Powell's tone revealed a growing concern that cannot be ignored.
🔔 Indices are rising, but so is uncertainty
The S&P 500 rose 0.43%, the Nasdaq gained 0.27%, and the Dow Jones added 284 points, or 0.7%. Part of that momentum came from Disney, which surprised the market with higher-than-expected earnings and an unexpected increase in Disney+ subscribers.
But the real focus was on the Fed's message.
🧊 The Fed isn't moving, but the economy is
As anticipated, the Federal Reserve kept interest rates between 4.25% and 4.5%, the range they have remained in since December. However, in the subsequent press conference, Powell did not hide his concern:
My intuition tells me that economic uncertainty is at an extremely high level.
Although negative scenarios have not yet materialized, the committee itself acknowledged that the risks of higher inflation and unemployment are growing.
🌍 Global trade and inflation under pressure
Added to this is the tightening of the trade landscape. President Donald Trump stated that he does not plan to reduce tariffs on Chinese imports in the short term, just before new trade negotiations between the US and China in Switzerland.
Powell was clear:
Substantial increases in tariffs could slow growth, increase long-term inflation, and raise unemployment.
At the same time, a Bloomberg report indicated that Trump's team is considering removing restrictions imposed by Biden on the export of AI chips, which boosted Nvidia by almost 2%. However, Apple and Alphabet (Google)dragged the Nasdaq down: Alphabet fell 8% following rumors that Apple plans to replace Google as its search engine with its own AI-powered solution.
🧠 What can we learn as investors?
When the market rises while the message is one of caution, we must remain vigilant. This calm may only be apparent. Future movements will depend on political decisions, inflationary pressure, and consumer confidence.
📊 How can you anticipate these changes?
Tools such as BullishSpotAI are designed to detect key signals before market movements become apparent.
👉 If you want to trade with an advantage, this is the best opportunity.
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