Has the Fed's interest rate cut come too late? "Bond King" Gundlach: The US economy may already be in a recession.
Although the US stock market is delighted by the significant interest rate cut by the Federal Reserve, "bond king" Jeff Gundlach still believes that the Fed's interest rate cut came too late; Gundlach believes that the continuously increasing number of unemployed in the United States indicates that the US economy has entered a recession.
Why did the US stock market rebound on Thursday? The hope of a soft landing, the trading characteristics of Powell, and the catalyst of zero-date options.
Unemployment data strengthens confidence in a soft landing; the market's immediate trend after the Federal Reserve announces interest rate cuts is often unstable and irrational; since Powell took office, the stock market usually declines in the last hour of Federal Reserve decision days; market maker funds flow analysis shows that on Thursday, the S&P was supported at 5700 points, driven mainly by zero-date options 0DTE positions.
Did you really think there was only one dissenting vote? There may be far more Federal Reserve officials opposed to a large interest rate cut than you imagine.
① The Federal Reserve launched this round of easing cycle with a bold 50 basis point rate cut on Wednesday; ② From their forecasts on the dot plot interest rate path, this move may have only received strong support from a slim majority of the 19 Fed policymakers.
Replicating the 'soft landing of reduced interest rates' in 1995, is Powell going to be like Greenspan?
Considering the current economic and interest rate environment and the fundamental differences compared to previous years, if the Federal Reserve also wants to lead the economy to achieve a soft landing, they must accelerate their pace.
[Breaking News in Asian Markets] China did not cut interest rates! The market is enthusiastic about the delay in the Fed's action, with the Bank of Japan stimulating the yen to rise.
On Friday (September 20th), Asian stock markets continued the global stock market rally, data shows the US economy may achieve a "soft landing." After the Bank of Japan announced no change in interest rates, the yen rose in the short term.
After the interest rate cut cycle begins, what will be the next step for the Federal Reserve? Wall Street is in constant debate.
After the Federal Reserve started its interest rate cut cycle this week, the largest banks on Wall Street have differing views on the speed and extent of the next rate cuts by the Federal Reserve. Until the outlook becomes clear, the financial markets will remain in a tense state.