The Fed restarts the easing cycle, and global assets may be reshuffled

After 4 and a half years, the Fed has started the easing cycle again.

In the early morning of September 19, Beijing time, the Federal Reserve announced that it would lower the target range of the federal funds rate by 50 basis points to a level between 4.75% and 5%. This is the first interest rate cut by the Federal Reserve since March 2020, and it also marks that its monetary policy has officially shifted from a tightening cycle to an easing cycle.

After the Federal Reserve announced the interest rate cut, all kinds of assets around the world moved, non-US currencies generally rose, and the RMB performed particularly well.

Many institutions believe that with the start of the Federal Reserve's easing cycle, all kinds of assets will be reshuffled, and global capital will shift from flowing to the United States two years ago to flowing to other regions. Among them, emerging markets represented by Chinese assets are expected to usher in investment opportunities.