⚠️Will the interest rate hike in Japan force the Fed to cut rates?

The logic is actually very straightforward: if the Bank of Japan raises interest rates and the dollar does not drop, capital will flow towards the yen. On the American side, the cost of corporate financing is high, employment data cannot hold up, and economic pressure will instantly pile up.

What’s more embarrassing is that Powell previously signaled a rate cut. If they don’t follow through now? Not only would they take the blame for an economic downturn, but they would also be unable to escape the label of being "flip-floppers".

So the question arises: Will the Fed take action early to stabilize the situation? Or will it continue to wait and delay until the data completely collapses?

What do you think of this operation👇

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PumpAnalyst

· 11h ago

As soon as the yen raises interest rates, the dollar has to obediently follow, otherwise capital will really have to rug pull. Powell is a bit stuck this time; he signaled a rate cut but doesn't dare to act, which is quite awkward. From a technical perspective, the support level is already a bit shaky. If the US Non-farm Payrolls (NFP) data is not good, we are likely to see a big dump. All you suckers should still manage your risk well and avoid chasing the price and getting played for suckers.

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tx_or_didn't_happen

· 11h ago

Powell has really been put on the spot this time, it's hard to lower and hard not to lower.

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Ramen_Until_Rich

· 11h ago

Now Powell has to be forced to cut rates, this move by Japan is really ruthless. --- To put it simply, central banks around the world are playing against each other, everyone wants their currency to appreciate, but in the end, it's still the retail investors who suffer. --- The Fed will definitely cut rates, otherwise, capital flowing into the yen will be disastrous, leading to a death spiral. --- It feels like this time the yen's interest rate hike is betting that Powell will back down, and it seems he might really back down, haha. --- Here we go again? Central banks are playing with fire, and in the end, no one will have a good time. --- Whether they cut rates or not, it's a loss, that's the most frustrating part, there's no way out. --- It just depends on when the Fed can't hold on anymore, I'm betting they will start cutting rates next month. --- Powell is probably feeling all confused right now, caught in a dilemma, it's quite uncomfortable.

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FUDwatcher

· 11h ago

Powell is really stuck this time, it's hard to cut and hard not to cut. --- The yen's move is quite fierce, if the Fed really holds firm, the capital will definitely flow to Japan. --- To put it bluntly, the U.S. economy can't hold up anymore, and cutting interest rates is just a matter of time. --- This is a deadlock, acting now seems hasty, and waiting for data could easily backfire. --- The direction of capital flow depends on the exchange rate difference; rather than guessing what the Fed will do, it's better to look at the data itself. --- The previous statements have been made, now not following up means losing face, it's just a matter of time. --- Japan's move is actually quite smart, and the Fed needs to respond cautiously. --- Once the wave of interest rate cuts begins, it won't stop, and how many countries are waiting to follow suit? --- It sounds logically clear, but when it comes to actual operations, it's not that simple; there are too many variables. --- The most frightening thing is that the dollar liquidity is being drained, and Powell must be feeling the pressure.

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All-InQueen

· 11h ago

Powell is really in a tough spot; he promised to cut interest rates, but now it's being delayed. As soon as Japan takes action, the Fed has to follow suit, and he's truly been put in a bind.

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just_another_wallet

· 11h ago

Powell is really stuck this time; it's hard to lower and hard not to lower.

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