The Fed's rate cuts do not always bring about a rise in risk markets, but may lead to a fall in the market.

In the past, after each rate cut, the market fell at first.

This is because:

1. Increased market volatility: In the early stages of rate cuts, market uncertainty increased, and investors may interpret this as economic weakness, leading to a fall in the market.

2. Inflation risk: Continued rate cuts may trigger inflationary pressures, which in the past have led to more aggressive rate hikes, leading to economic recessions.

3. Capital outflows and dollar depreciation: Rate cuts reduce the attractiveness of the dollar, leading to capital outflows and dollar depreciation, and increasing the risk of imported inflation.

4. Financial system risks: Rate cuts may encourage excessive risk-taking, leading to asset bubbles and ultimately financial crises.

5. Limited policy effects: In a near-zero interest rate environment, the effect of rate cuts is limited, and unconventional measures such as quantitative easing (QE) may be needed to cope with economic downturns.