#美联储降息

The Federal Reserve announces a 25 basis point rate cut, which is inherently positive, so why did the market drop so much?

On December 18 local time, the Federal Reserve announced that it would lower the target range for the federal funds rate by 25 basis points to between 4.25% and 4.50%, in line with general market expectations.

On the same day, Federal Reserve Chairman Powell held a press conference regarding the rate cut decision. He stated that the Federal Reserve would likely be 'more cautious' when considering adjustments to policy rates in the future. Powell said that the decision to cut rates in December was more challenging, but it was the 'right decision'. He indicated that whether the Federal Reserve will cut rates in 2025 will be based on future data rather than current forecasts, and that the Federal Reserve will consider further rate cuts only after improvements in inflation.

Previously, on November 26 local time, the Federal Reserve released the minutes of the Federal Open Market Committee (FOMC) meeting held on November 6-7. The minutes showed that the Federal Reserve decided to lower the target range for the federal funds rate by 25 basis points at the November meeting, noting that further adjustments to the monetary policy stance would help maintain a strong economy and labor market, while continuing to push inflation down further.