The Federal Reserve took a bold decision in its interest rate resolution early this morning. It cut interest rates by two percentage points in one breath, lowering the target range to 4.75% to 5.0%. It was the first interest rate cut in more than four years. Chairman Powell emphasized at the post-meeting press conference that the U.S. economy is in good shape and there are currently no signs of recession. The 2-point rate cut is a "recalibration" of the Fed's monetary policy. Therefore, there is no guarantee that the same rate cut will be made at the next meeting. , investors should not expect the Fed to continue cutting interest rates at this level.
During the press conference, gold surged to a record high of $2,600 before retreating. At the same time, the S&P and Dow Jones also fell quickly after hitting record highs during the session, while the Nasdaq also ended lower.
Cryptocurrency markets appear to be relatively strong in comparison, with Bitcoin accelerating after the U.S. close and still hovering around the $62,000 level at the time of writing. In the past 24 hours, nearly US$200 million was liquidated across the market, of which short orders accounted for US$120 million.
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