A rate cut does not directly mean a recession.
First, the Fed's rate hikes are usually aimed at curbing inflation and cooling the economy, while rate cuts are aimed at preventing a recession and increasing vitality and resilience by injecting money into the market.
Historically, the Fed often took action after the economy showed signs of recession due to lack of experience in previous rate cut cycles, resulting in a decline in public confidence in its regulatory capabilities, which may exacerbate recessions and market panic before and after rate cuts.
However, today's Fed is very different, with rich experience in macroeconomic regulation and increased public confidence in its capabilities.
Recent economic data such as non-farm payrolls and CPI have been strong, so if the Fed decides to cut rates this month, the market may see it as a timely preventive measure rather than a signal of recession.
Therefore, although rate cuts are often interpreted as concerns about the economic outlook, in the current economic environment, it is more likely to maintain stable growth and health of the economy rather than herald the beginning of a recession 👉** Follow me to view the homepage introduction and start your wealth journey! **🚀 #美国8月零售销售环比好于预期 #美国大选如何影响加密产业? #美联储宣布降息50个基点 #新币挖矿HMSTR #美降息25个基点预期升温