The Federal Reserve's interest rate cut this time is 25 basis points, just as everyone guessed.
This time, Powell mentioned a few key points:
This round of rate cuts will pause for a moment, catch its breath, just like that wave at the end of last year. But the overall rate cut cycle is not over; no one is thinking about raising rates.
He specifically mentioned the employment data, saying it might not be as good as reported, with possibly 20,000 fewer jobs each month.
Buying short-term government bonds is mainly to ensure there’s enough money in the market to stabilize interest rates.
Overall, it doesn’t sound too hawkish, and it even seems a bit dovish.
This basically confirms that it’s unlikely he will cut rates again during his term.
The market is now hoping that after the change in June next year, there might be a few more cuts in the second half of the year.
The short-term direction is still unclear; it's hard to say whether money will flow in.
In the next two to three months, the market is expected to remain tough.