Federal Reserve officials warn that Trump's tariffs may trigger a wave of layoffs.
①President Kashkari of the Minneapolis Federal Reserve Bank expressed concern about the potential economic impact of uncertainty in the USA's long-term trade policy, believing it could lead to large-scale layoffs; ②Kashkari warned that although the number of layoffs has not yet increased, businesses are beginning to plan for potential layoffs that may occur due to the ongoing uncertainty.
Regarding interest rate cuts! Several Federal Reserve officials have spoken out, with possible action as early as June.
① On Thursday local time, Cleveland Fed President Loretta Mester ruled out the possibility of a Federal Reserve rate cut in May but hinted at a possible cut in June; ② On the same day, several Federal Reserve officials publicly discussed the matter of rate cuts. Federal Reserve Governor Christopher Waller also stated that he would support a Federal Reserve rate cut if there is a significant rise in the unemployment rate.
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Wall Street's major bulls have given in! The impact of Trump's tariffs on the U.S. stock market is much more severe than expected.
① Deutsche Bank strategists have lowered the year-end Target Price for the S&P 500 Index by 12% to 6,150 points, expecting that the earnings of constituent companies will decline by 5%; ② Deutsche Bank strategists anticipate that the S&P 500 Index will fluctuate within the range of 4,600 to 5,600 points and believe the USA government needs to make concessions in trade policy to improve economic conditions.
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Jefferies Financial reveals a new watershed in the US stock market game. Will the bulls and bears battle it out at 5,500 points?
A trading price above 5500 will send a signal to the Analyst, indicating that traders are shifting from selling on highs to buying on lows.
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Jefferies Financial: The "shine" of the US stock market is over, and it may continue to decline in the future.
Christopher Wood, the Head of Global Equity Strategy at Jefferies Financial, stated that the U.S. stock market has long passed its "golden period," and investors should be prepared for further declines in U.S. stocks, U.S. bonds, and the dollar.
Flipping out faster than flipping a book? Trump once again blasts Powell: Not lowering interest rates is a mistake!
① The President of the USA, Trump, criticized Federal Reserve Chairman Powell again on Wednesday, accusing him of keeping interest rates too high and expressing that he might give him a call. ② Trump has recently criticized Powell multiple times and has not ruled out the possibility of firing Powell, but reportedly the Secretary of the Treasury and the Secretary of Commerce advised him against it.
Harmack stated: The Federal Reserve should continue to reduce its balance sheet, and the MMF policy needs to remain stable.
Harmack stated on Wednesday that the current situation still supports the Federal Reserve's continued reduction of its balance sheet. In the face of significant uncertainty, now is not the time to change MMF policy.
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