Bitget CFD Chief Analyst: FOMC minutes are hawkish, market focuses on "high rates lasting longer"

Bitget CFD Chief Analyst Lewis Huang stated in a live broadcast yesterday that the overall tone of the Federal Reserve's July FOMC meeting minutes is hawkish. Although the interest rate was kept unchanged at this meeting, several officials emphasized that if inflation does not continue to decline to the 2% target, further tightening of policy or even another rate hike remains a viable option. This means that the market should not simply trade based on interest rate cut expectations in the short term, but should reassess the impact of "high rates lasting longer" on the US dollar, US Treasury yields, gold, and US stock valuations.

Lewis Huang pointed out that the subsequent market direction will be determined by a combination of inflation and employment data: if CPI, PCE, or wage data rise and the job market remains resilient, the US dollar and US Treasury yields may strengthen, while gold and high-valuation assets like the Nasdaq 100 may come under pressure; conversely, if inflation significantly cools and employment and consumption weaken simultaneously, the market will raise expectations for Federal Reserve easing, and gold, non-US currencies, and risk assets are expected to receive support. He suggested that CFD traders focus on the correlation between the US two-year Treasury yield, the US dollar index, and gold, waiting for price breakthroughs and pullback confirmations after major data releases, avoiding chasing the initial wave of volatility, while strictly controlling leverage and stop-loss risks.