Core statement:
Core view: The current economy requires significant rate cuts, key basis: Rising unemployment is due to overly tight monetary policy, inflation is no longer a major issue, policy position: The Federal Reserve needs to look ahead and quickly reach the neutral rate (about 2%)
Key background identity: Federal Reserve governor nominated by Trump, leaning towards rate cuts, past stance: Opposed the 25 basis point cut in September, advocated for a 50 basis point cut; Proposed a 25 basis point cut in December in November
Core data: Current federal funds rate: 3.75%-4.00% (Reduced by 25 basis points in October) Neutral interest rate target: about 2% (approximately 2 percentage points lower than current)
Market and Impact: Market Response: Flat (Expectations have been digested, statements align with its consistent stance) Policy Impact: Strengthen the consensus of a 25 basis point rate cut in December, intensifying internal divisions within the Federal Reserve, Asset Impact: Short-term consolidation of the rebound foundation for risk assets, medium-term may affect the rate cut pace in 2026