The Fed's expected meeting just ended lowered the Fed's interest rate by 50 basis points, far exceeding market expectations. It was originally believed that the Fed would steadily cut interest rates by 25 basis points, but this time Powell made a bold decision to cut 50 basis points beyond expectations.
And the message conveyed to the market, Powell said, I don't see any signs of deterioration or accelerated deterioration in the United States in any aspect, and I don't think there is any possibility of recession.
On this basis, the market will think why the Fed should cut interest rates by 50 basis points? His answer is, because from July to September, I did not cut interest rates in July last time, but from a series of employment data in July and August, because our interest rate is too high, it has caused a cooling effect on the job market and the economic market at the same time, making the job market now from overheating to a very balanced one. If I continue to maintain an interest rate of 5.5, this balance is likely to become the gradual loss of vitality of the US job market, so what should I do?
I want to keep this market at a reasonable level, so I should return the tight monetary policy to the natural monetary policy. Therefore, I decided to cut interest rates by 50 basis points today in order to maintain the status quo.
Today, we saw a 50 basis point interest rate cut. Although the market celebrated, it immediately adjusted back. This is the market voting with its feet. They do not believe the Fed's rhetoric. They still believe that there are great risks in the US economy.
Then the Fed said that the Fed will decide to cut interest rates one by one based on economic data. The guidance he gave is that there will be another 50 basis points in 2024 and another 100 basis points in 2025. This means that the US economy will continue to move forward in the bumps. Whether it can land softly is now a big question mark, and the global capital market will continue to bump.
Since it has chosen 50 basis points, it is impossible for a slow bull to rise slowly, but there will be large ups and downs. Please be prepared. The bumps are ahead. Lao K will continue to bring you practical strategies and the latest news. #美联储宣布降息50个基点 #加密市场反弹 #BTC走势分析 $BTC $ETH