🎯【Fed's rate cut next week draws attention】The Fed is facing a difficult decision. Will it cut interest rates by 50 basis points next week or by 25 basis points? The futures market is leaning towards a more moderate 25 basis points. If interest rates are cut next week, it will be the first in more than four years. Interest rates are currently at a 23-year high. Fed officials unanimously support rate cuts because inflation is slowing and the economy needs to be prevented from being damaged.

💥A 50 basis point rate cut in September can restore borrowing costs faster, but there are also risks, such as triggering concerns about the economic outlook and overreaction in financial markets. Former Cleveland Fed President Mester said communication was complicated and there was no convincing reason.

💡Powell said the Fed is not involved in politics, while Republican candidate Trump previously warned the Fed not to cut interest rates in September, and a larger rate cut would have political risks. The futures market indicates that the Fed will cut interest rates by 1 percentage point before the end of the year. #美联储降息 #经济动态