Viewpoint Network News: On September 18, according to CCTV News, the minutes of the latest Federal Open Market Committee (FOMC) monetary policy meeting of the Federal Reserve on September 17 showed that the Federal Reserve decided to lower the target range for the federal funds rate by 25 basis points to between 4.00% and 4.25%.
This is the first interest rate cut by the Federal Reserve since December 2024.
It is learned that the Federal Reserve passed the interest rate cut resolution with 11 votes in favor and 1 against. At the meeting, the dot plot was also updated, indicating that there will be two more rate cuts (each by 25 basis points) within this year, one more than the prediction in June.
After the announcement, spot gold rose sharply, breaking through $3,700 per ounce again; the US dollar index dropped below its low point in early July to 96.22, hitting a new low since February 2022; US stocks rose briefly, with the real estate and financial sectors of the S&P 500 showing significant gains; the offshore RMB rose 0.2224% against the US dollar, reaching a high of 7.0845, the first time since November last year.
Data shows that since 2000, the Federal Reserve has had four interest rate cut cycles.
The first interest rate cut cycle was from January 3, 2001 to June 25, 2003, during which the interest rate was cut 13 times with a total reduction of 550 basis points.
The second interest rate cut cycle was from September 18, 2007 to December 16, 2008, during which the interest rate was cut 10 times with a total reduction of 500 basis points.
The third interest rate cut cycle was from July 31, 2019 to March 16, 2020, with a total of five cuts and a reduction of 225 basis points.
The fourth interest rate cut cycle began on September 18, 2024, and as of now, there have been three rate cuts in this cycle, with a cumulative reduction of 100 basis points.