Look!
Former senior officials of the Federal Reserve have expressed their opinions!
This year, the Federal Reserve is very likely to cut interest rates three times! Against the backdrop of stable inflation and a good employment situation, the likelihood of the Fed taking action again increases. It is worth mentioning that Clarida, the former vice chairman of the Federal Reserve and now an economic adviser to a large asset management company, said that the Federal Reserve may implement three interest rate cuts this year, and this is not groundless!
He explained that the current inflation rate is quite well controlled and is gradually approaching the 2% target set by the Federal Reserve, while the job market is also performing strongly and the market situation is more balanced. Even Federal Reserve Chairman Powell said that the current signs of economic overheating are no longer obvious and opportunities for interest rate cuts have emerged.
Clarida also conducted an in-depth analysis of market conditions, pointing out that there is a large amount of funds in the U.S. market waiting for the benefits of interest rate cuts. Once the interest rate cuts are implemented, they will have a significant impact on the market. He added that previous interest rate hikes had resulted in higher bond returns, and now a rate cut would attract more investors. He also made special suggestions to Asian investors, believing that the cost of buying U.S. bonds will become lower and more attractive after interest rate cuts.
However, he also reminded that there are still uncertainties in the future. Inflation may rebound, the economy may cool down, and international tensions may have an impact on the decision to cut interest rates. Finally, he also mentioned new changes in the field of artificial intelligence. Although obvious changes cannot be observed from the data in the short term, the development potential of this field cannot be ignored.
All in all, regarding the issue of interest rate cuts, we will wait and see and wait for further changes in the market!
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