#MarketRebound

The global financial market this morning reacted uniformly to analysts' forecasts that the U.S. Federal Reserve (Fed) will begin cutting interest rates in the third quarter of 2025 to support the slowing economic recovery.

Many investment funds and economic strategists on Wall Street believe that after a series of interest rate hikes since 2022, the Fed is likely to reverse its stance on "monetary easing" to stimulate credit and spending amid a slowdown in U.S. GDP growth over the past two quarters.

"The risk of recession is increasing, inflation has gradually been controlled to the target range of 2%, and the labor market is showing signs of cooling. This paves the way for the Fed to consider lowering interest rates at the end of July or early August," a senior strategist at a major investment bank in New York commented.

In the bond market, the yield on 10-year U.S. government bonds fell by about 10 basis points to 3.75%, while the U.S. dollar index stood near its lowest level in two weeks against a basket of major currencies, reflecting many investors' expectations that capital costs will be cheaper in the second half of this year.