🚨 Powell just dropped a HIDDEN message
🚨 Powell just dropped a HIDDEN message
While everyone celebrates the rate cut only 1% saw the truth
I spent 19 hours digging and I’m SHOCKED
Here’s what Powell’s message really means and what’s next 👇🧵
❒ The Fed is no longer focused only on CPI priorities are shifting
❒ More and more attention goes to the labor market where first cracks are already visible
❒ Employment dynamics look like the charts we saw before the 2008 meltdown
❒ Now their strategy is to protect jobs even at the cost of softer policy
❒ Why is this critical
- If employment falls -> incomes decrease
- Lower incomes -> demand contracts
- Contracting demand -> recession risk
❒ That’s why the Fed is moving preemptively: liquidity > price control
❒ Officially the Fed is still shrinking its balance sheet and withdrawing liquidity from the system
❒ Treasuries and mortgage-backed securities are declining from their 2022 peaks
❒ But Powell’s key word was “flexibility” in case of new problems
❒ And that’s already a hint that QE is ready to be launched much faster than the market expects
❒ Speaking of bubbles, take a look at the stages of a bubble chart
❒ We’re not even in the Blow-off phase yet
❒ We’re just entering the segment where smart money is already accumulating
❒ And the crowd thinks “it’s just a little pump”
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