Sure enough, Area A has just rebounded, and the US stock market has come to rhythm again; last night's US CPI data was released, inflation in January was as high as 7.5%, and the three major Indexes on Wall Street fell; this wave of operations shows that financial institutions judge that the Fed's interest rate hike has been unstoppable.
Latest news: U.S. inflation exceeded expectations again in January, with CPI rising to 7.5 percent year-on-year, continuing its highest level since 1982. The price index in January was almost "generally rising", with both the CPI and the core CPI index growing at 0.6% month-on-month, both exceeding market expectations. The news weighed on the US stock market last night. Let's take a look at the latest analysis of the [Forbidden Military Aircraft Division] -
1) Inflation has become a mountain that Wall Street can't get around.
2) The Fed and inflation have created an "unprecedented standoff"; just as the U.S. military and Russian forces have faced off in Ukraine. As we said in July 2021, the U.S. economy is dying immediately without rate hikes and slowly dying without rate hikes. Either the Fed is decisively shooting at inflation, or the Fed is eventually cannibalized by inflation.
3. The continuous surge in global commodity prices, especially oil prices, has played a huge stimulus to inflation in the United States. As of now, major institutions believe that oil prices may break through the $100 mark and will remain for a long time. The White House's plot to suppress oil prices failed.
4) The European Central Bank said on Thursday that it was suspending interest rate hikes, which means that the ECB and the Fed are beginning to go against the grain. The game between the euro and the dollar has entered a critical period. For a long time, the EcB has been following the Fed, and this round of ECBs is aiming for the long term.
5) Will the Fed's interest rate hike really destroy the U.S. economy? This is a very complex academic issue. In general, one or two rate hikes are unlikely to be fatal; the key is to see how much the Fed ultimately needs to raise rates to address the current inflation crisis.
6, has now entered the top martial arts master to show their talents, the Federal Reserve and the European Central Bank are the world's largest and second largest central banks respectively, the dollar and the euro to fight for the hegemony of the world's currency, hey hey, any loophole may lead to terrible failure.
7, the biggest weakness of the us dollar has become the US stock market, after all, most of the wealth of Americans is precipitated in the US stock market. These people are mainly long-term shareholdings, and they adhere to the principle of not selling when they die; they must wait until they collapse to be happy.
