Deep Tide TechFlow News, according to the macro sector displayed by SoSoValue, at the interest rate meeting on December 18, the Federal Reserve is expected to cut interest rates by 25 basis points, lowering the target range for the federal funds rate to 4.25%-4.50%. For the pace of rate cuts next year, the Federal Reserve has adjusted its expectations from the original 'four rate cuts' to 'two' through the latest dot plot. Additionally, the Federal Reserve has raised its expectations for future core PCE inflation and GDP growth, consistent with Powell's remarks, all signaling a more 'hawkish' stance than the market anticipated. Data shows that today, the market risk sentiment VIX index has risen to its highest point since early August (when the Bank of Japan raised interest rates).
SoSoValue analysts state that the FOMC has proposed an unexpectedly aggressive rate cut plan, coupled with Powell's 'hawkish' remarks, leading to a shift in market sentiment towards panic, with U.S. Treasuries even overreacting. The U.S. stock market subsequently corrected, while the dollar strengthened. Overall, all risk assets reacted strongly to the FOMC's latest signals. Based on macro data, we believe that the current fundamentals of the U.S. economy remain unchanged, the dollar remains strong, and consensus assets like cryptocurrency continue to attract capital inflows. Each market correction driven by emotional fluctuations is a good entry point, and we recommend maintaining risk exposure at this time.
