The reason for the current interest rate cut, but the market is still weak is
1. This interest rate cut is fine, the dot plot shows only one rate cut next year, which is less than the market's expectation of three rate cuts next year.
2. The magnitude of the next interest rate cut has decreased to 55%.
3. Powell has raised the threshold for rate cuts to ensure the independence of the Federal Reserve.
The third point is very crucial. The last time the threshold for rate cuts was raised was in December 2024, after which the Federal Reserve paused rate cuts and did not resume until nine months later, so the market is somewhat concerned.
