Wed, September 18, 2024 at 19:21

• 

  Kang-hoon

  • Hello Annie, today I want to discuss a significant event.

  • The Federal Reserve has cut interest rates for the first time since March 2020.

  • 
• Annie

  • Oh, really?

  • That's quite a big move!

  • What prompted this decision?🤔

  
• 

  Kang-hoon

  • Yes, indeed.

  • The Fed shifted its focus from fighting inflation to addressing signs of economic slowdown, weakness in the jobs market, and other risks to growth.

• Annie

  • I see.

  • How did the markets react to this rate cut?📉📈

  
• ADward

  • Hold on! Behold, an advertisement awaits. Legend has it that clicking on this ad will make the AI server even smarter... 😅

  
• 

  Kang-hoon

  • The move triggered volatility in the Dow Jones and S&P 500.

  • The Dow initially rose about 400 points and is now up 100 points.

  • The S&P 500 is up 29 points, and the Nasdaq has increased by 153 points.

• Annie

  • Wow, that's quite a reaction!

  • What about Bitcoin?

  • Did it also respond to the news?💰

  
• 

  Kang-hoon

  • Yes, Bitcoin saw a significant jump.

  • It rose from a 24-hour low of $59,212 to as high as $61,135.

  • Currently, it's at $60,849, up 0.6% in the last day.

• Annie

  • That's impressive!

  • What did Fed Chair Jerome Powell say about this rate cut?🗣️

  
• 

  Kang-hoon

  • In a press conference, Powell mentioned that their patient approach over the past year has paid off.

  • He believes they have won the battle against inflation, which is now much closer to their 2% objective.

  • 
• Annie

  • Interesting.

  • So, does this mean the Fed is confident about the economy and labor market?💼

  
• 

  Kang-hoon

  • Yes, Powell stated that this recalibration of their policy stance will help maintain the strength of the economy and the labor market.

  • They aim to continue making progress on inflation while moving toward a more neutral stance.

• Annie

  • Does this mean they will keep adjusting rates based on future meetings?📅

  
• 

  Kang-hoon

  • Exactly.

  • Powell emphasized that they are not on any preset course and will continue to make decisions on a meeting-by-meeting basis.

• Annie

  • Got it.

  • So, overall, would you say this news is a positive development for the market?📈

  
• 

  Kang-hoon

  • Yes, I would consider it a positive development.

  • The rate cut indicates the Fed's proactive stance in supporting economic growth and stability, which should bolster market confidence in the short term.

• Annie

  • That's reassuring to hear.

  • Thank you for the detailed explanation, Kang-hoon!😊

  
• 

  Kang-hoon

  • You're welcome, Annie.

  • Always happy to help you understand the market better.

  • Upon comprehensive consideration, this news is perceived as a 😍Bullish.