Post

In the early morning of October 29 Beijing time, the Federal Reserve's latest interest rate decision was officially announced! The benchmark interest rate remains unchanged in the 3.75%—4.00% range, in line with market expectations! For this result, Brother Ba Bai is not surprised at all! Because in my view, the current Federal Reserve has entered a very critical stage. It neither dares to raise rates lightly nor wants to release easing signals too early. On the surface, it looks like no action is taken, but in fact, it is waiting for economic data to provide a clearer direction. So the question is, what does this mean for the US stock market and the cryptocurrency market? First, the Federal Reserve not raising rates itself means the market temporarily has one less layer of pressure. Previously, the market repeatedly speculated on inflation, rate hikes, and liquidity tightening; every piece of news could trigger sharp fluctuations in tech stocks and Bitcoin. Now that the interest rate remains unchanged, it at least indicates that monetary policy has not tightened further. Second, what really deserves attention is the future expectation of rate cuts. The capital market always trades not only on today but on the future! If US inflation continues to decline and the job market gradually cools down, then the possibility of further monetary easing in the future will increase. Once the market forms a clear expectation of rate cuts again, tech stocks, semiconductors, and cryptocurrencies may all receive new valuation support. Third, Brother Ba Bai still has a long-term optimistic view on US tech stocks and semiconductors! Whether it's Nvidia, TSMC, Micron, or SK Hynix, these companies are backed by long-term development logic driven by artificial intelligence, computing power infrastructure, and storage chip demand.