The Fed lowered the benchmark interest rate by 0.25% (25bp) to 4.25~4.50%.
However, the US stock market, the Dow Jones Industrial Average, fell by 2.58%, the S&P by 2.95%, and the Nasdaq by 3.65%.
This is because a cautious view was mentioned that the number of interest rate cuts next year would be reduced from four times to twice, and the expected benchmark interest rate at the end of next year would be raised from 3.5% to 3.9%.
(18 Fed members, dot plot)
The inflation rate has progressed to 2%, but it is still considered an unstable situation.
The US inflation rate in 2025 is projected to be 2.5%, and the economic growth rate is expected to be 2.1%.
Jerome Powell said he would consider interest rate cuts while looking at price and employment indicators, shifting his stance to a cautious view on interest rate cuts.
However, there are conflicting parts between the big cut interest rate cut in September last year and the current remarks, and he is being ridiculed with the term "fool in the shower room" first used by a Nobel Prize-winning economist in the United States.
"Fool in the shower room" is understood to mean that economic policies are mixed up with cold water and hot water, ruining the economy.
Our country, which is experiencing prolonged domestic demand stagnation along with the intensification of political uncertainty due to impeachment politics, seems to need more time to get out of the long tunnel.
Have a nice day.
