[4E Exchange: The Fed cuts interest rates by 50 basis points, opening an easing cycle] On September 18, the Federal Reserve announced on the 18th that it would lower the target range of the federal funds rate by 50 basis points, exceeding market expectations. This is the first interest rate cut by the Federal Reserve in four years, and it also marks a shift from a monetary policy tightening cycle to an easing cycle. The dot plot shows that the Federal Reserve expects to cut interest rates by 50 basis points this year. According to 4E Exchange, after the announcement of the interest rate decision, the U.S. stock market went through a roller coaster market, with the three major indexes rising and falling, and finally all closed slightly lower, with the Dow Jones and S&P 500 both hitting record highs during the session. Non-U.S. currencies rose across the board, crude oil fell slightly, gold fell after hitting a new high, and the crypto market rose across the board. As of press time, Bitcoin rose 3.26% and Ethereum rose 3.1%. Against the backdrop of the start of the interest rate cut cycle and the continued decline in risk-free interest rates, institutional investors may increase their layout in the crypto market to seek higher returns. However, it should be noted that although interest rate cuts usually have a positive impact on risky assets, the substantial interest rate cuts have also raised some market questions about the health of the US economy, which has a significant impact on prices. 4E reminds you to pay attention to the recent market volatility risks and allocate assets reasonably.
