It is indeed highly likely that the Fed will cut interest rates by another 25 basis points in December.

The Fed has always been good at communicating with the market. In addition to expectation management, it rarely scares the market through special means.

No matter which Fed official speaks, the attitude of the speech may be hawkish or dovish.

But the attitude of communicating with the market is very clear.

The Fed pays attention to the market and has its own consistent timetable.

As early as September when it began to cut interest rates, the Fed had actually communicated clearly with the market.

It is highly likely that the interest rate will be cut by 100 basis points before the end of the year.

Now, according to the plan, the interest rate has been cut twice by 75 basis points in September and November.

The next step is of course December, and another 25 basis point interest rate cut will be completed.

What impact will it have on the market?

The most direct one is, of course, the continuous release of liquidity.

At the same time, with the reduction of the reverse repurchase account of the US federal account

and the rise of US Treasury bonds

The US will see the real release of liquidity in Q1 2025

This will have two direct impacts

First, it will force the world's major sovereign countries to also release liquidity

Such as the European Union, Japan, Tokyo, and other emerging markets

Second, it will benefit the world's major risk assets

Such as the US stock NASDAQ, technology stocks, cryptocurrencies, and pie...

In Q1 2025, there will be a small peak in global risk assets.

But it does not include Tokyo's real estate and I A.