A 50 basis point rate cut does not necessarily mean that "the Fed has seen recession signals that have not yet been made public", which is more of a speculation by the market or the media.
However, a 50 basis point rate cut clearly shows that the Fed is willing to take action before more unfavorable economic data appears, and to increase the intensity of rate cuts to enhance economic resilience.
On the one hand, we are facing uncertainty in recession speculation; on the other hand, it is a positive signal clearly conveyed by the Fed - stabilizing the market through active rate cuts.
Therefore, the specific direction of the market in the short term is difficult to predict, and there may be uncertain fluctuations in the next few weeks. But in the long run, I think this is a positive factor.
One of the core goals of the Fed is to maintain the stability of the financial market, and it chose to cut interest rates sharply in advance this time to prevent the market from deteriorating.
Therefore, the market is likely to gradually rise in volatility, showing a more stable trend over time.
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