#BTC As the CPI data steadily fell to 2.5%, it was only one step away from the 2% inflation target anchored by the Federal Reserve. The market generally expected that the door to interest rate cuts was quietly opening.
Among the calls for interest rate cuts, there is still a firm bear camp. They insist that September may not usher in the dawn of interest rate cuts, but there is a subtle possibility of interest rate hikes. Although this view is unique, it is also thought-provoking.
If interest rates are raised rashly at this moment, it is tantamount to throwing a boulder on the calm waters of the financial market. The ripples it stirs may be far-reaching and complex, almost equivalent to blowing the battle horn at a sensitive period of economic recovery.
After all, the current global economy is in a fragile and delicate recovery stage, and every subtle policy adjustment may trigger a chain reaction with far-reaching impact.
So I am more inclined to believe that in the current context, it is a wiser choice to maintain a prudent and flexible monetary policy and carefully assess the economic situation. Although interest rate cuts seem imminent, various factors should be considered comprehensively to ensure that policy adjustments can effectively promote economic growth and stabilize market expectations to avoid unnecessary market fluctuations and risks.
