Hello everyone, I have some big news to share with you! There is a trend worthy of attention from the Federal Reserve - they have large internal differences in opinions on whether to significantly cut interest rates.
Early this morning, the Federal Reserve released the minutes of its September meeting, which showed that not all members agreed with the decision to cut interest rates significantly. Some members believe that the interest rate cut should be cautious and that 25 basis points is sufficient and more in line with market expectations. Another group of members advocated a more active interest rate cut and proposed a direct cut of 50 basis points. They believe that in addition to controlling inflation, they also need to provide stronger support for economic growth and the job market.
Members who oppose major interest rate cuts worry that the market may be uneasy about too rapid a policy shift, and advocate cutting interest rates by 25 basis points each time to make the policy more consistent and flexible, thereby giving the Federal Reserve more room to gradually adjust according to the economic situation. Maintain policy consistency and predictability.
After the minutes of this meeting were released, the focus of the market turned to the Federal Reserve meeting in November. Combining Powell's previous remarks and recent employment data, the market generally expects that the interest rate cut in November may be maintained at 25 basis points.
Notably, the stock market reaction was overwhelmingly positive, despite the minutes showing internal disputes. The S&P 500 hit a new high and the Dow Jones Industrial Average is near an all-time high. The reason behind this may be that although there are different voices on the interest rate cut in September, the Federal Reserve still insists on the path of cutting interest rates, which is a positive signal for the market.
That’s it for today’s sharing. If you like my interpretation, please like and follow. Your support is my biggest motivation, thank you!
#6万保卫战 #9月美国CPI实现6连降 #SCR价格预测 #CPI&PPI来袭,美国通胀升还降? $BTC $ETH $BNB