Bitget CFD Chief Analyst: FOMC Minutes Hawkish, Market Focuses on "Higher for Longer" Rates

On August 21, Lewis Huang, Chief Analyst at Bitget CFD, stated during a livestream that the Federal Reserve's July FOMC meeting minutes signaled a hawkish tone. Although the meeting kept interest rates unchanged, several officials noted that further policy tightening or even another rate hike remains a viable option if inflation fails to sustainably decline toward the 2% target. Huang pointed out that the market should not simply trade on rate-cut expectations in the short term, but rather reassess the impact of "higher for longer" rates on the U.S. dollar, Treasury yields, gold, and U.S. equity valuations.

He said the market direction ahead will be determined by the combination of inflation and employment data: if CPI, PCE, or wages rise while employment remains resilient, the U.S. dollar and Treasury yields may strengthen, putting pressure on high-valuation assets such as the Nasdaq 100; conversely, if inflation cools notably while employment and consumption weaken in tandem, the market will revive expectations of Fed easing. Huang advised CFD traders to monitor the correlation between the U.S. two-year Treasury yield, the U.S. dollar index, and gold, waiting for breakouts followed by pullback confirmations, avoiding chasing the initial volatility, while strictly controlling leverage and stop-loss risks.

[TechFlow]