The Fed is really aggressive when it raises rates, why is it so lenient when it cuts rates?
The CME Fed Watch tool shows that the market has not yet decided whether the Fed will cut interest rates by 25 or 50 basis points in September
The PCE inflation measure favored by the Fed will not be released until the end of the month. However, unless there are unforeseen macroeconomic changes, it is now almost a foregone conclusion that the Fed will slash borrowing costs at its September meeting. However, it is still difficult to predict the specific content of policymakers' next move, and this uncertainty suggests that there may be more volatility in the future. The CME Fed Watch tool shows that the market has not yet decided whether the Fed will cut interest rates by 25 or 50 basis points next month, and traders are slightly inclined to a more cautious rate cut. If the Fed takes more aggressive measures, it may boost the appeal of the retail and consumer sectors. But if officials cut interest rates more cautiously, investors may think that now is a good time to buy the seven major technology giants in the US stock market. The situation will continue to change with the release of initial claims and retail sales data. The Fed may also use the opportunity of the Jackson Hole meeting next week to hint at the direction of interest rates. (Jinshi)