Finally, the good news of the Fed's 50 basis point rate cut came, and US stocks and cryptocurrencies also rose in response.
According to Powell's point of view:
- He does not think there are signs of [recession]
PS: Of course, judging from the data, it is not now, but it is close;
- Inflation control is effective, so it is no longer necessary to maintain high interest rates;
- This large-scale rate cut also considers concerns about unemployment.
According to the dot plot and yesterday's meeting, the rate cut will not be too fast:
It is expected to reach 3.4% in 2025
It is expected to reach 2.9% in 2026
Ultimately maintain a relatively neutral interest rate, rather than the ultra-low interest rate of that year.