The Fed's May meeting revealed three key points: interest rate brakes, slowing down of Treasury bond sales, and unclear timing of interest rate cuts.
First, about interest rate brakes. The Fed hinted that the interest rate hike cycle may have come to an end and no longer plans to raise interest rates in the future. This means that the Fed may stop raising interest rates to cope with the potential risks of high interest rates to financial markets and the economy.
Second, about slowing down of Treasury bond sales. Starting next month, the Fed will slow down the pace of selling Treasury bonds, from 60 billion to 25 billion per month. This move is aimed at easing market pressure, providing more liquidity to the market, and promoting the stability of the financial market.
Finally, about the unclear timing of interest rate cuts. The Fed reminds everyone not to speculate when to cut interest rates, because even they themselves have no conclusion. At present, the Fed is in a wait-and-see state, balancing the potential risks of high interest rates to the financial market, while using this period to attract global capital.
These three key points revealed by the Fed's May meeting have undoubtedly brought new thinking and expectations to the market. Let us wait and see how the future policy direction of the Federal Reserve will affect the global financial markets and economy
