Brazil has just entered a rate-cutting cycle. The previous decline was influenced by inflation worsening due to the US-Iran war and election disruptions. The recent rebound is completely in sync with the rise in support for the conservative Bolsonaro. However, Brazil's overall fiscal rate-cutting cycle and economic situation still depend on oil prices and the US dollar. While this rebound can't predict the actions of the September FOMC, just like changing presidents in Brazil doesn't necessarily mean things will improve, the long-term trend of easing remains irreversible.