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As the date of the Fed's interest rate decision approaches, the political and economic landscape is becoming increasingly concerning. Recently, Trump has frequently spoken out on the issue of interest rates, and his words and actions have sparked many speculations in the market.
Trump has taken a series of seemingly contradictory actions: on one hand, he personally visited the Fed, putting pressure on Chairman Powell to lower interest rates; on the other hand, he publicly stated that he does not intend to replace Powell. This strategy of combining both soft and hard approaches seems to have produced unexpected results.
Interestingly, despite Trump's frequent statements, the market's expectation for the Fed to maintain the current interest rate level has become increasingly strong. According to CME Group's FedWatch tool, the market currently expects a 97.4% probability that the Fed will keep rates unchanged at the upcoming meeting.
This data indicates that, regardless of political pressures, market participants still believe that the Fed will make decisions based on economic data and long-term policy goals. The independence of the Fed seems to have been reflected to some extent in this game.
As the date of the interest rate decision approaches, all parties are closely following every move of the Fed. Regardless of the final outcome, this decision will undoubtedly have a significant impact on the global financial markets. At this critical moment, market reactions and policymakers' decisions will jointly shape the future direction of the economy.