In the early hours of Thursday (2022.5.5) overnight, the Federal Reserve announced a 50 basis point interest rate hike and will start to shrink its balance sheet in June. Powell ruled out the possibility of a 75 basis point interest rate hike. The yield on U.S. dollar bonds fell and U.S. stocks rose sharply. At the same time, the price of gold futures rose by more than 30 US dollars in midday trading in the Asian market on Thursday, returning to the top of 1,900 US dollars. Although the Federal Reserve raised interest rates to curb inflation and emphasized that inflation is a risk to the economy, it has ruled out that in 2022 Further rate hikes for the remainder of the period.
U.S. stock index futures fell slightly before the U.S. market opened, failing to extend yesterday’s gains. While Fed Chairman Jerome Powell temporarily ruled out a 0.75% rate hike yesterday, some believe the central bank will continue to tighten monetary policy at a faster pace overall and will continue to tighten monetary policy at its next multiple meetings. 50 basis points of rate hike.
Trading strategy deployment: it is recommended to go short at high levels
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