The interest rate cut is a long-awaited "rain"! Why? Let me tell you in detail.
The EU is under great economic pressure and has pressed the interest rate cut button in advance. The economic recession is looming, the manufacturing PMI is as low as winter, and the situation between Russia and Ukraine is even worse. The people are suffering and the political circle is also turbulent. The interest rate cut has become their "stabilizing force" to stabilize the situation. As soon as the EU moves, the United States smells an opportunity and thinks: "It's a good time to reap the harvest!" The Biden administration is in urgent need of a shot in the arm in the face of an election crisis. After losing the debate with Trump and his approval rating plummeting, the interest rate cut has become his "panacea" to win back the hearts of the people. Trump's assassination has added fuel to the interest rate cut issue, and the situation is becoming more urgent.
In the final analysis, the interest rate cut is based on the dual considerations of inflation and employment. The June CPI data showed that core inflation only increased slightly, and the market exclaimed that the first quarter increase was just a "flash in the pan." The unemployment rate is still slowly rising. If it is not controlled, it may cause a large-scale unemployment wave. Goldman Sachs and other authoritative institutions predict that the current neutral interest rate is far lower than the current level, and there are sufficient reasons to cut interest rates. The Federal Reserve has almost no choice.
Wall Street elites almost unanimously believe that the September interest rate cut is a foregone conclusion. This interest rate cut is even more timely than expected, which makes people have to sigh at its inevitability.
If you like spot, want to roll funds together, and hoard bull market spot
Click on the avatar, follow me, share for free, and wait for you in the circle!
In the current ups and downs of the market, blindly working alone will never bring opportunities! ! !
