CICC: The Fed's initial 50bp rate cut is the fourth time in history, which partially exceeds market expectations
On September 19, in response to the Federal Reserve's 50bp rate cut, CICC issued a commentary stating that a 50bp rate cut is an unconventional start, exceeding market expectations. This 50bp rate cut is in line with the expectations of CME interest rate futures, but exceeds the forecasts of many Wall Street investment banks, and is also an "unconventional" start.
Historically, a 50bp rate cut at the outset has only occurred in times of economic or market emergency, such as the technology bubble in January 2001, the financial crisis in September 2007, and the pandemic in March 2020.
