Breaking News! The Federal Reserve's Interest Rate Cut Script Takes a Major Turnaround: Powell Presses Pause, Is the January Cut Completely Off the Table?

The market has gone into a frenzy! Rumors say Powell has halted the January rate cut plan, causing a sudden and fierce shock in the interest rate swap market, with the odds of a rate cut dropping below 27% overnight. This means traders are collectively pessimistic about the first rate cut of the new year, and market confidence has been sharply frozen.

Three major turning points behind this shift:

1. Persistent Inflation Resurgence | Recent oil prices and service costs have quietly risen, suggesting that the Fed's most dreaded stubborn inflation may be making a comeback.
2. Economy's Resilience Surpasses Expectations | Employment and consumption data remain strong, significantly reducing the urgency for a rate cut, with officials confidently choosing to wait and see.
3. Powell Reveals Hawkish Card | "Higher for longer" is no mere slogan; delaying the rate cut sends the strongest signal: Fed pivoting is not that easy!

Data doesn't lie: earlier, over 70% of bets favored a January rate cut, but now less than 30% remain. Wall Street is calling it "overly optimistic"! Bond and stock markets have already responded with shocks, and if expectations for a rate cut continue to fade, global assets may face another storm.