Only the Federal Reserve can make the effect of interest rate cuts resemble interest rate hikes. Initially, it was a cut of twenty-five basis points, but the result was a complete market crash. The Dow Jones dropped by 2.58 points, marking ten consecutive days of decline, which is the first time in fifty years. The S&P 500 fell by three points, and NASDAQ dropped by 3.56 points. Tesla lost over 960 billion in a single day. This was supposed to be a rate cut, yet the dollar index actually surged. Meanwhile, other assets suffered; gold and cryptocurrencies all fell, and the offshore RMB reached 7.32.

This is all due to a statement from Fed Chair Powell, indicating that the pace of interest rate cuts will slow down over the next three years. Previously, there was an expectation that there would be four rate cuts next year, totaling one hundred basis points. Now, there may only be two cuts, totaling fifty basis points. This has left everyone feeling unsettled.

Originally, the plan was that the Fed had finally cut rates, which would alleviate a lot of pressure globally and lead to a round of liquidity. This would allow assets in various countries to see significant growth; however, it unexpectedly changed midway.