According to Jinshi Data, Sima Shah, chief global strategist at Principal Asset Management, said today's rate cut decision was not surprising. However, the significant revision of economic forecasts showed that this was a reluctant rate cut aimed at laying the foundation for the Fed's tougher policy approach in 2025.
Shah pointed out that the current economic and inflationary background does not require a lot of policy stimulus, and the incoming new government may bring serious inflation challenges. The tendency to further relax monetary policy still exists, but caution and patience are needed.