At 1:55 a.m. on October 1, 2024, Beijing time, Federal Reserve Chairman Powell delivered a speech at the National Association for Business Economics, which was like dropping a bombshell in the financial market. In this speech, Powell made it clear that the recent 50 basis point rate cut should not be seen as a signal of equally radical future measures, and the next step will be smaller in scale. At the same time, if economic data remains consistent, there may be two more rate cuts this year, with a total of 50 basis points.
Prior to this, the Federal Reserve announced a 50 basis point interest rate cut on September 18, which has attracted great attention from the market. Powell's speech this time is undoubtedly a further elaboration on the future direction of monetary policy, and its importance is self-evident.

The market has always been highly sensitive to the direction of the Fed's monetary policy. Powell's speech this time has brought new uncertainties and expectations to the financial market. On the one hand, investors will pay close attention to changes in economic data to determine whether the Fed will carry out subsequent interest rate cuts as Powell said. On the other hand, financial institutions will also adjust their investment strategies and risk management based on this information.

The Fed's monetary policy decisions have a wide range of impacts on the global economy. Interest rate cuts usually stimulate economic growth, reduce borrowing costs, and promote investment and consumption. However, excessive interest rate cuts may also trigger risks such as inflation. Therefore, the Fed needs to find a balance between economic growth and price stability.

In the coming days, the market will continue to pay attention to the Fed's every move and changes in economic data. Powell's speech has opened a new chapter for the financial market, and the development of this chapter will depend on the joint action of many factors. Investors and market participants need to remain vigilant and respond flexibly to various possible situations in order to seize opportunities and avoid risks in the ever-changing financial environment.

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