On July 31, the global financial markets experienced an unexpected turmoil. After the Fed announced its interest rate decision, former U.S. President Trump took a series of surprising actions, triggering widespread attention and concern in the market.

The Fed Chairman Powell maintained a consistent cautious stance in the interest rate decision, stating that future policies would depend on economic data. This ambiguous statement seems to have angered Trump, who immediately took a tough stance.

Shortly after the resolution was announced, Trump declared a 40% additional tariff on Brazilian products, bringing the total tariff rate to 50%. This decision has had a huge impact on multiple industries, especially the beverage, coffee, and meat industries. Most of these products are exported to the United States, and the increase in tariffs will inevitably raise production costs and inflationary pressure.

Trump's move is widely interpreted as pressuring the Fed to consider lowering interest rates. However, this tactic could trigger broader international trade disputes. Canada has announced an indefinite postponement of trade talks originally scheduled to end on August 1, and other countries may take similar actions.

For investors, the market trends over the next few months are filled with uncertainty. If the Fed maintains its current position, interest rate cuts may be delayed until October. Meanwhile, inflationary pressures caused by tariffs could bring additional stress to the market.

Market expectations have also changed accordingly. The probability of an interest rate cut in September has decreased from about 60% to 49.6%, and the expectation for the total interest rate cut for the year has also been reduced from 44 basis points to 36 basis points.

In this financial game, the next actions of all parties will directly affect the global economic landscape. Investors need to closely follow the developments and respond cautiously to potential market fluctuations.