Jon Faust, who once served as a think tank for Fed Chairman Powell, has spoken! 🤔 He said that the key to the next interest rate cut drama is not whether it is a "small step" of 25% or a "big step" of 50%. The real highlight lies in the subsequent rhythm and strength. "The direction of this plot is difficult and hard to predict!"🤷♂️
"Don't rush to use drastic measures. I don't think it's time for us to throw out a 50% interest rate cut at the beginning." Foster said leisurely. "But the scale in my heart is still slightly tilted towards 50%. Besides, it is not impossible that the big guys in the FOMC will agree and decide to do it this way."🤔
Faced with those voices in the market who are worried that a sharp interest rate cut will scare their friends, Foster has a set of soothing words: "The Fed has a lot of ways to use a bunch of gentle and firm words to make the word interest rate cut sound warm and no longer make people turn pale."💬 He also added: "The interest rate cut is not necessarily because of fear, but also to make the future more stable!"💪
