The 50 basis point rate cut of the US dollar can be said to be a little beyond expectations without any suspense.
At 2 a.m. on September 19, the Federal Reserve announced a 50 basis point rate cut! The much-anticipated first rate cut of the Federal Reserve has finally landed! The US dollar rate cut cycle has officially begun. At the same time, Federal Reserve officials expect interest rates to fall to 4.4% by the end of 2024 and 3.4% in 2025. That is to say, the US dollar may continue to cut interest rates this year.
This is good for Chinese assets, Hong Kong stocks and A shares. First, the domestic interest rate cut space is expected to open up, and it is not ruled out that the reserve requirement ratio and interest rate cuts will be cut this year; second, the Federal Reserve’s interest rate cut is good for the appreciation of the RMB and RMB assets.
At the same time, China’s real estate pressure may be reduced, and housing prices are expected to stabilize. However, the US interest rate of 4.5%-5% is still relatively high. Historically, unless there is a major economic crisis, the Federal Reserve rarely cuts interest rates by 50 basis points when starting a new rate cut cycle. The Federal Reserve’s interest rate cut this time with a force higher than the expectations of institutions may be to achieve a "soft landing" of the economy and hedge the risk of "stalling" of economic activities.
This Fed interest rate decision may be the most anticipated and concerned one by the Chinese people in history, mainly due to the sluggish domestic economic environment and the decline in the real estate industry. This interest rate cut may, to a certain extent, enhance the confidence of the Chinese people in economic development and their expectations for a better future economy.
In the future, more central banks may introduce interest rate cuts. The Fed's interest rate cut is likely to trigger a new round of global easing. Our monetary policy will also have room for adjustment. Whether it is a reserve requirement ratio cut or an interest rate cut, we have to wait and see. However, it is certain that the probability of the country's policy of stabilizing growth will increase greatly this year.
For the currency circle, it is definitely good. The spot sol, pepe, people, bnb, wif, ton, ordi, btc, and eth currently held in hand continue to make profits. Just hold the spot in your hand and wait for a hundred times
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