Powell: Don't blame me, blame Trump if you want to! High interest rates+stagflation expectations, short-term market setbacks—— The market fluctuated in Powell's words last night—— Powell's main message last night was one thing: I want to shift the blame, don't blame me, Trump is just like this guy every day, changing back and forth. At present, tariffs will push up inflation and suppress growth, which may lead to stagflation. In this highly uncertain situation, the Federal Reserve will maintain high interest rates and not consider cutting interest rates for the time being. Even if the market falls, it will not intervene to rescue the market. Summary of key points of speech: 1. Don't expect the Federal Reserve to intervene in rescuing the market: Trump's daily changes remind us that we should not expect the Federal Reserve to immediately rescue the market when it falls, as it has done in the past. 2. The Federal Reserve will not be affected by political pressure: Regardless of elections or changes in the political situation, the Federal Reserve will maintain policy independence. If there is a shortage of US dollars, the Federal Reserve is prepared to provide US dollar liquidity to central banks worldwide: But there has not yet been a large-scale shortage of US dollars. 4. Currently, it has not reached the point of stopping the reduction of the balance sheet (balance sheet reduction): This indicates that the Federal Reserve is still implementing QT (quantitative tightening) and the liquidity environment continues to tighten. 5. There is no contradiction between the Federal Reserve's dual goals of maximizing employment and stabilizing prices: But the warning is that the future unemployment rate and inflation may rise simultaneously, making the situation more complex. 6. Supply chain disruptions may lead to longer lasting inflationary pressures: The current external factors are affecting the sustainability of inflation, and the Federal Reserve still needs to be cautious. 7. It is expected that interest rates will deviate from the established target within this year and may not be able to achieve the target again until next year This means that interest rates will not be easily lowered in the short term, and policies will remain tight. 8. It is expected that there will be a "partial relaxation" of banking regulations related to cryptocurrencies: It may release a small positive signal that is beneficial for the digital asset industry. 9. Cryptocurrencies are gradually becoming mainstream: Establishing a legal framework for stablecoins is considered a reasonable and positive approach. My opinion—— I personally think that Lao Bao's comment on Trump this time is still a classic. The market is currently uncertain, and all assets will not perform well. Everyone can only wait and see. In the short term, market sentiment is dampened and risk assets are under pressure; But in the long run, the gradual clarification of regulatory frameworks and the mainstream trend of cryptocurrencies may bring new growth momentum to the market. Video from:@ Acyn