Friends, good afternoon!
A moment ago, the United States published the Federal Reserve's interest rate resolution, which caused a widespread and significant decline in global stock markets.
The three main stock indices in the United States recorded declines of over 1%. The Nasdaq 100 fell by as much as 2.2%, and Tesla's shares plummeted by up to 7%. At the same time, the stock market in Mexico was also affected, showing a notable decline.
Let's do a brief analysis of the current situation:
The Federal Reserve reduced interest rates by 25 basis points, accumulating a decrease of 100 basis points this year.
The rate fell from 5.5% to 4.5%, representing a significant adjustment.
However, the outlook for future rate cuts in 2024 is causing divisions in the market. Currently, inflation can no longer decline significantly, and within the Federal Reserve, the stance towards policies has become more cautious.
In this occasion's speech, the president of the Federal Reserve primarily emphasized caution in policies, although he still maintains economic development as the main objective, without ruling out adjustments in the future.
Under the strong influence of the elected president Trump, the Federal Reserve's policy must also take into account certain political factors. The market predicts that in 2024, the interest rate cut could be smaller, averaging around 37 basis points. This could imply a single cut of 25 basis points or a cumulative reduction of 50 basis points, but the overall adjustment would not be significant.
In this occasion's speech, the president of the Federal Reserve primarily emphasized caution in policies, although he still maintains economic development as the main objective, without ruling out adjustments in the future.