Powell drops the next bomb: interest rate hikes are off the table

CascadingDipBuyer · 2026-02-04T23:04:13+00:00

The Federal Reserve has shifted its policy, indicating no further interest rate hikes for now. Powell attributes easing inflation to tariffs rather than cooling demand, signaling a move from tightening to easing, which is prompting market adjustments and potential investment opportunities.

CascadingDipBuyer

2026-02-04 23:04:13

Abstract generation in progress

The Federal Reserve has just made a policy U-turn that has sent the markets into turmoil. Fed Chair Powell made it unmistakably clear: further interest rate hikes are not on the agenda. The key interest rates will remain in the range of 3.5 to 3.75 percent for now.

What’s surprising about this development is the reasoning. While inflation is easing, Powell does not attribute this to cooler demand but to the easing effect of tariffs. A notable difference that reflects the Fed’s political mindset.

The tightening cycle is over – the markets are now preparing for a new phase. Rate cuts are becoming increasingly likely in the coming months, while hikes are falling out of focus. This bombshell of positive signals is driving traditional safe havens like gold to new record highs.

The essence of this policy bombshell: the focus is shifting from tightening to easing. Investors should realign their portfolios accordingly and seize the emerging opportunities.

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