The US finally cut interest rates! The US Federal Reserve announced a 50 basis point rate cut at 2:00 am on September 19. The Fed is still bold in its actions. It raised interest rates aggressively at the beginning, and it is just as aggressive now. There is no hesitation of 25 basis points, but it went straight to 50 basis points!
However, what is puzzling is that there is no movement in the US stock market. The US stock market opened high and fell, and the currency market is basically the same. Market data shows that the three major US stock indexes have all turned down, completely erasing the gains since the Fed announced its interest rate decision. In addition, spot gold has also completely given up the gains since the Fed announced its interest rate decision. It makes people feel very disappointed, thinking that the good news may have turned into bad news. I was worried that the Asian stock market and currency market would follow the decline early, but I didn’t expect that Asia’s performance was shocking!
Japanese stocks opened sharply higher. On September 19, the US S&P 500 futures rose 0.85% in the Asian session, the Nasdaq futures rose 1.3%, and the Dow futures rose 0.51%. In addition, the Nikkei 225 opened 1.6% higher and the Topix opened 1.4% higher.
Soon after, Asian cryptocurrency investors went crazy. Bitcoin rose vertically to break through 62,000, Ethereum broke through 24,000, and other mainstream altcoins all followed suit and soared! In the past 4 hours, the entire network was liquidated by 65.2839 million US dollars, mainly short orders! The big prince BCH that Lao Tang bought at a low price in the past few days rose sharply, which was amazing! (I’m not bragging, everyone can see my order record) Haha!
On September 18, the pulse of the US economy and the pulse of the world economy were all strongly linked with the Federal Reserve’s decision to cut interest rates!
The market's reaction is completely different. Some people are worried that the interest rate cut will reduce the interest on their deposits; others are looking forward to the interest rate cut, thinking that this will allow the economy to recover quickly!
Now, after the Federal Reserve has raised interest rates 11 times in a row, the U.S. economy and even the world economy are like running a super marathon. All countries have been dragged down and seem to have reached their tolerable limit!
Is it true that lowering interest rates is the lifeline to stimulate economic recovery and the key to opening the door to economic revitalization?
People will wait and see.