According to Jinshi, the Federal Reserve and Wall Street are at odds over how quickly interest rates should fall. Although the recent 50 basis point rate cut is seen as just the beginning, Fed officials tend to lower interest rates in a slow and steady manner, while the market is betting that worsening economic conditions will force the Fed to speed up the pace of rate cuts.

In its September "dot plot," the Fed forecast another 100 basis point rate cut this year and another 100 basis point cut by the end of 2025, lowering the target rate range to 3.25% to 3.5%. Fed Governor Kugler said further rate cuts would be appropriate if economic data continued on their current trend.

The next FOMC meeting will be held on November 6-7. Matthew Luzzetti, chief U.S. economist at Deutsche Bank, pointed out that if the unemployment rate exceeds the Fed's forecast of 4.4% and non-farm payroll growth remains at 100,000 or less per month, another 50 basis point rate cut in November will be on the agenda. Currently, the market is betting on another 50 basis point rate cut in November, and federal funds futures pricing shows that the probability is about 60%.