The market sentiment over the weekend was once again guided by Nick's tweets. Nick's tweets used an interesting word called "minimizing regrets", and today's explanation also made the market fully anticipate the possibility of the Fed's 50 basis point rate cut. What is minimizing regrets? That is, if the Fed cuts interest rates by 50 basis points in September and is expected to continue to cut interest rates, then if the economy performs steadily before the November interest rate meeting and there are no negative effects, then the Fed will not regret choosing to cut interest rates by 50 basis points. But if the Fed chooses to only cut interest rates by 25 basis points, and if the economic situation deteriorates in the next period of time, then the Fed is likely to regret it because their actions lag behind the situation.
Before the Fed announced its decision, Nick's tweets have been guiding the market to accept a 50BP rate cut, and explained that it was not due to a recession, but more to achieve a soft landing of the economy. These inevitably make people wonder whether the Fed deliberately released rumors to prevent the 50BP rate cut from causing panic in the market. Moreover, the Fed has previously raised interest rates by 75BP many times, so it is not surprising to start the rate cut cycle with 50BP.
Blind guess is that the interest rate will be cut by 50BP tonight, and the cumulative interest rate cut is expected to be 100BP this year. After the meeting, Master Bao stated that the economic situation is good, but in order to better support the stable development of the economy, he chose to cut the interest rate by 50BP. #çŸèćšć©çćłèźźć Źćžćšćł #çŸćœ8æé¶ćźéćźçŻæŻć„œäșéąæ #汱毚ćŁäœæ¶ć°æ„ïŒ #çŸćœć€§éćŠäœćœ±ćć ćŻäș§äžïŒ #BTCâ $BTC
