Fed Chairman Powell finally told the truth. And admits that the FED is VERY, VERY SCARED!
Powell said on Wednesday that the central bank will need more evidence that inflation is moving sustainably toward the 2% target before cutting InterestRates.
He finally admitted inflation is winning. The Fed can no longer promise Inflation at 2% or that inflation is “transitory.”
At the same time many are awaiting the rate cut!
The above image shows market predictions being stated at Polymarket
Most people are certain, that the rate cut will come soon.
Robert Kiyosaki says:
“The problem is most people have no idea what the Fed Chairman admitted means to them or them or their families or to the world. In my simple language it means “We’re F’d.” As I warned in RDPD over 27 years ago “Savers are losers.” The dollar has lost 95% of its purchasing power since 1913 the year the year the Fed and IRS were formed.”
So basically, people are awaiting the next rate cut and a decreasing Dollar Index. Usually, a decreasing Dollar Index leads to increasing Gold prices. But wait!
As of today, the Dollar index remains kind of stable. But the Gold price goes to the moon. That simply means, that many, many, many people DO THINK, that the Dollar is HEAVILY OVERVALUED!
This can lead now to two scenarios:
1) If the Dollar price is correct, then the Gold price will fall down to 2000 in the next few months.
2) If the FED will cut the rates as expected, the Dollar value will go down and the Gold price remain the same or go up.
I would say, that the second scenario is more likely. 😁
Any of these scenarios will lead to stressful market conditions and MANY PANIC RUNS.
We as algo-traders should be ready to exploit these and apply Expert Advisors, which are built to rip off the market while it is “uncertain”.
BFG9000, that sounds like a weapon, is such an Expert Advisor many recommend.
The EA is still under the radar for most of us and only a few people know it. But be warned. It is indeed a financial weapon and might NOT be for you.
Register at Binance