Macroeconomic Overview: Fed FOMC Meeting

At 2:00 AM tomorrow, the Fed will lower interest rates by 25 basis points, marking the first rate cut in the past 12 months.
A 25 basis point rate cut actually signals more than it has a practical effect. The stock market is at a high, inflation hasn't fully come down, yet the Fed still took action, indicating that it is more afraid of an economic hard landing and unwilling to risk unemployment and a downturn in growth. The result is that the dollar is under pressure, asset markets are more appealing, and things like stocks, gold, and Bitcoin that "hedge against fiat currency depreciation" will benefit.
The cryptocurrency market has not fully risen because it had already surged in the previous months, which preemptively exhausted the market. However, historical experience tells us that when the Fed cuts interest rates at high levels in the stock market, it is highly likely to rise afterwards, although a short-term pullback for consolidation is easy to happen first. There are many cases of a decline followed by a surge within 30 days.
So I think the next trend is likely to be: the Nasdaq index in the US stock market will continue to challenge 25,000 before the end of the year, with some fluctuations in between; the dollar may have a small rebound, but there is no fundamental support; once the short-term easing cycle ends and the Fed refocuses on inflation, that’s when the market sentiment will truly change, and that will be the time to pay attention to risks.
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