"Prices" have become a hot topic after dinner. The aunties who bargain for a dollar in the vegetable market and the white-collar workers who order takeout and compare prices in the office are all lamenting that money is becoming less and less spendable. The Federal Reserve on the other side of the ocean has also made a big move - interest rate cuts. These two seemingly unrelated things are actually inextricably linked and may even affect your and my "purses".

Financial "roller coaster": interest rate cuts, is it a joy or a worry?

As soon as the news of the Federal Reserve's interest rate cut came out, the global financial market was like riding a roller coaster, jumping up and down, so lively! Stocks, gold, crude oil, these usually high-ranking financial assets, also fluctuate with people's moods. Some people cheered and felt that the opportunity to make money had come; some people frowned and worried that the risks were unpredictable.

So, why did the Federal Reserve cut interest rates? Simply put, it is to stimulate economic growth, just like a person who has a cold needs to take medicine and injections. When the economy is in recession, some "stimulation therapy" is also needed. Lowering interest rates is a common "economic cold medicine" that can make it easier for companies to get loans and expand production, and ordinary people can buy houses and cars more easily, thereby driving consumption and making the economy run faster. Powell "shouted": Don't panic, stay steady! The news of the Fed's interest rate cut is like throwing a stone into a calm lake, causing ripples. Just as everyone was speculating about the impact of this wave of "interest rate cuts", Fed Chairman Powell spoke in time to give the restless market a "reassurance pill". Powell is like an experienced "old captain". Facing the turbulent market, he told everyone in a calm voice: "Don't panic, this interest rate cut is just a normal adjustment based on economic conditions. We will also flexibly adjust policies according to actual conditions to stabilize this "economic giant ship"!" Powell's speech was like a shot of cardiac stimulant, instantly calming the market's nervousness. After all, for the global economy, the Fed's influence cannot be underestimated. Its every move affects the nerves of countless people. Powell's statement undoubtedly injected a strong confidence into the market and made everyone full of expectations for future economic development.