"Federal Reserve Megaphone": The first 50BP rate cut marks a bold start to the rate cut cycle

On September 19, Nick Timiraos, a reporter for the Wall Street Journal known as the "Federal Reserve's mouthpiece," said that the Fed voted to cut interest rates by 50BP, the first rate cut since 2020, marking a bold start to the rate cut. Eleven of the 12 Fed voting members supported the decision to cut interest rates, bringing the benchmark federal funds rate to a range of 4.75% to 5%. Quarterly forecasts released on Wednesday showed that most officials expect to cut interest rates by at least 25BP at meetings in November and December. The decision to cut interest rates puts the Fed firmly in a new phase: trying to prevent last year's rate hikes (which pushed borrowing costs to a two-decade high) from further weakening the U.S. labor market. (Jinshi)