🚨 Powell just dropped a HIDDEN message

in #money5 days ago

🚨 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 👇🧵

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❒ 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

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❒ 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

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❒ 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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