Overview of the key points of the Fed's September interest rate decision
Policy shifts to easing: The Fed announced a 50 basis point rate cut and adjusted the dot plot, indicating that there is still room for rate cuts in the future, marking the beginning of the monetary policy cycle turning to easing.
Adjustment of economic expectations: Although the GDP growth forecast for this year was slightly lowered and the unemployment rate forecast was raised, the Fed remained confident that inflation would return to the 2% target and the economy would softly land.
Employment market focus: Powell emphasized at the press conference that the labor market was stable, but attention should be paid to downside risks, which shows the Fed's attention to employment issues.
Future rate cut rhythm: The Fed said it would gradually determine the rate cut rhythm based on economic conditions, and the market needs to pay attention to changes in economic data.
Asset allocation strategy: In a limited easing environment, investors need to re-evaluate asset allocation and consider interest rate normalization and possible QE scale restrictions.
