The Fed considers a second round of rate cuts and the China-U.S. economic dialogue
The Federal Reserve has recently taken active self-rescue measures, suggesting that a second round of interest rate cuts may be implemented soon. At the same time, China received a call from the top leaders of the United States to discuss the purpose of the call and the future development trend of the Chinese and American economies.
Over the past period of time, the Fed's interest rate cut has attracted widespread attention from the global economic community. This is not only the first interest rate cut in more than four years, but also the extent of the cut exceeded market expectations. However, some economists believe that this is just the beginning of the interest rate cut, and the Fed may soon launch a second round of interest rate cuts. Boston Federal Reserve Bank President Collins emphasized at a public event that in order to ensure economic stability, the Fed may need to further adjust interest rates, with the focus on protecting the economy from adverse effects through interest rate cuts.
The main reason why the Fed is considering a second round of rate cuts is that the first round of rate cuts failed to achieve the expected results. In order to cope with the current severe economic situation, the Fed must rely on a new rate cut strategy to boost the economy, which is an irreversible trend. It is worth noting that there is a very high level of support for the rate cut plan within the Fed, and many senior officials believe that lowering interest rates is a logical decision over time.
This communication between China and the United States will undoubtedly bring new dynamics and uncertainties to the economic relationship between the two sides. The changes in the economic trends of China and the United States will depend on the policy adjustments of both sides, market reactions and the evolution of the global macroeconomic environment. This interaction will not only have a direct impact on the economies of the two countries, but also have a profound impact on the global economic landscape.
The Fed assesses the market reaction to rate cuts and recessionary pressures
The Fed's senior officials' successive statements are actually assessing the market's reaction to the rate cut. If the market feedback is in line with expectations, the rate cut plan will be smoothly implemented. This may boost the long-term weak US economy. However, some analysts believe that the second round of rate cuts that the Fed is preparing to launch actually shows that the US economy is facing recession pressure.
Initially, the Fed hoped to respond to high domestic inflation through aggressive interest rate hikes, and used this as an excuse to plunder capital from other countries, causing Japan, South Korea, and Southeast Asian countries to become victims of the dollar's hegemony. However, when the harvesting strategy failed in the face of the two major economies of the European Union and China, coupled with Japan's strong resistance, the Fed's harvesting plan ultimately failed. Due to the failure of the dollar repatriation plan, the Fed's interest rate hike policy is no longer sustainable - every second of interest rate hike means high interest expenses, which have exceeded the US economy's ability to bear. Therefore, interest rate cuts have become a measure that the Fed has to take.
China-U.S. High-Level Economic and Trade Dialogue: Seeking Cooperation and Stability
As the Federal Reserve prepares to implement a second round of interest rate cuts, senior Chinese and American officials held an online meeting, which was an exchange between Chinese Commerce Minister Wang Wentao and US Commerce Secretary Raimondo to discuss economic and trade issues of common concern to both sides. The two sides had a candid, in-depth and pragmatic discussion.
Although this meeting is a routine intergovernmental communication, it is generally believed that the Biden administration has high expectations for high-level dialogue between China and the United States, hoping to ease tensions through dialogue and seek China's economic support. Globally, China, as the second largest economy, has a market potential that is of great significance to the United States. The United States hopes to boost the U.S. economy and restore international market confidence in U.S. Treasury bonds by reducing China's reduction of its holdings of U.S. Treasury bonds and increasing its purchases.
During the meeting, Minister Wang Wentao emphasized China's concern about lifting sanctions against Chinese companies and improving the business environment for Chinese companies in the United States. This shows China's emphasis on a fair trade environment and its expectation of lifting unreasonable trade restrictions. The communication between China and the United States not only reflects the close ties between the two countries in the economic and trade fields, but also reflects the importance of cooperation and stability in the current global economic context.
The US economic difficulties and the growth of A-shares have little to do with China
The US should understand that the root cause of both the 2008 financial crisis and the current debt crisis lies in the US's own economic decision-making and management, and has no direct connection with China. The claim that "the Fed's interest rate cut policy has driven the explosion of the A-share market" is not true. In fact, the current round of growth in the A-share market is more attributed to China's policy adjustments, and the Fed's interest rate cut measures are more of a supporting rather than a leading role. The key point is to distinguish the different impacts of the two.
For a long time, if the United States hopes to gain support and cooperation from China, it must show its true sincerity and attitude. Otherwise, once the crisis breaks out, it will have a chain reaction like a domino effect, leading to serious consequences. By then, the United States will be closer to the abyss of crisis, and it will be too late to regret. #SCR开盘 #6万保卫战 #9月美国CPI实现6连降 #多军的反击 #鄂B炒家
