Analysis of previous historical interest rate cut cycles:
2019 interest rate cut: It started in a slightly weaker economic environment, faced the risk of trade friction, and was affected by political pressure. At that time, Federal Reserve Chairman Powell was under pressure from Trump when making decisions. After the interest rate cut, growth slowed but did not fall into recession. The US stock market hit a new high after a brief decline of more than half a month after the interest rate cut.
2007 interest rate cut: It started in a period when credit risk events occurred frequently, which is different from the current situation. After the interest rate cut began, the real estate bubble burst, and the subprime mortgage crisis caused the United States to fall into recession.
1995 interest rate cut: At that time, inflation fell from a high level and the unemployment rate curve was flat, which is somewhat similar to the current situation. This time the economy had a soft landing and the stock market performed well.