🧐 The rate cut is just a surface phenomenon; the real key lies in "continuity" | Why is 25bp enough, while 50bp is actually bad news?

The Federal Reserve decided to cut rates by 25 basis points, and it is expected to cut rates two more times this year, resuming the rate cuts that were paused since last December.

A 25bp cut is indeed a "moderate rate cut" that aligns with market expectations, so the market's reaction has been limited. However, I believe this is a great start and the best signal for the beginning of a bull market, as the next two cuts are likely to happen as well, which will create expectations.

Starting a tentative cooling is the Federal Reserve's consistent style; it is enough to ignite risk assets without letting the market get out of control.

In reality, what matters is not whether it is a single 25bp or 50bp cut, but whether the Federal Reserve clearly signals "there will be continuous rate cuts in the future."

As long as the market believes this is the beginning of a new round of easing, it is sufficient to support the upward expectations for risk assets.

A 50bp cut is an aggressive option:

With the current economy not in severe recession, the Federal Reserve does not need to use a "big move," which could instead be interpreted as a negative signal indicating "the economy is very bad."

So my conclusion is: short-term sentiment has already risen, mid-term depends on the pace of rate cuts, and long-term is an institutional trend.

So, from last night until now, what has performed the best in your assets?

免责声明：本文章仅代表作者个人观点，不代表本平台的立场和观点。本文章仅供信息分享，不构成对任何人的任何投资建议。用户与作者之间的任何争议，与本平台无关。如网页中刊载的文章或图片涉及侵权，请提供相关的权利证明和身份证明发送邮件到support@aicoin.com，本平台相关工作人员将会进行核查。