Obviously, the first Fed meeting in 2024 did not have a positive effect on the economic market, because judging by the reflection of large financial products such as stocks and bonds, Fed Chairman Powell's words did not play a reassuring role, and as hopes of a rate cut in March faded, the market changed: **dollar**.
Some argue that the Fed can still do it in the near future by stabbing it in the back, as it has done before, before the next FOMC meeting.
The first big surprise for the market was the share price of New York Community Bankcorp, which helped Signature Bank during the banking turmoil of 2023, as well as problems related to commercial real estate, but the Fed has magical control because it can be used as an alternative to easing monetary policy: it can extend the Bank's Term Funding Program (BTFP) if needed.Clearly, the FOMC has moved away from tightening policy and is starting to consider when it can be appropriately eased. However, this does not mean that they will immediately pour a lot of easing into the market, as the traditional, healthy American style does, and then add those policies that are not currently possible.
Fed Observer Philip Marley:"Forget about the March rate cut", he expects the Fed** to cut by 25 basis points for the first time in June and then steadily at a quarterly pace, depending on how the economy and inflation develop, and inflation is now partly dependent on geopolitics, which is an uncertain process in very uncertain times.
At a time when much of the world is talking about a low-hanging back recovery, it is clear that they are all based on the Fed's start of a rate-cutting cycle, and it is under this expectation that the market is leading the way in the United States, but after the January meeting, the market reaction is somewhat unsatisfactory, as if to extinguish the enthusiasm of the market overnight, at this critical time, perhaps we should forget the content of the January meeting, and beware more of the "artificial" downturn in March.