Is the Federal Reserve going to cut interest rates by 75 basis points?
Every word and action of the Federal Reserve directly stirs the restless hearts of billions around the world and will directly impact the trends of global capital markets and the pockets of billions. On September 18, 2024, the Federal Reserve announced a 50 basis point rate cut, marking the first rate cut since the pandemic in 2020, bringing interest rates below 5%. Subsequently, the major meetings announced follow-up rate cuts and reserve requirement reductions, pulling the A-share market from a low of 2689 in the ICU to 3674 within a week, a nearly 1000-point increase.
On June 9, the US giant Citibank publicly announced that it expects the Federal Reserve to cut rates by 75 basis points, with rate cuts of 25 basis points in September, October, and December, and additional cuts of 25 basis points in January and March of 2026, totaling a 50 basis point reduction. Are you particularly excited upon hearing this? Once the Federal Reserve cuts rates, it will narrow the interest rate gap with our university, and global capital will surely flow into our university, causing A-shares to soar again. Last September, A-shares directly rose by 1000 points; history does not simply repeat, but it will be remarkably similar. Let’s wait and see, like and save as we sit and wait for the Federal Reserve's rate cut and witness the soaring of A-shares.