Zhi Tong Cai Jing·2025-09-18 06:34Group 1 - The Federal Reserve has lowered the federal funds target rate by 25 basis points to a range of 4.00%–4.25%, marking the first rate cut of the year [1] - The easing of the dollar is expected to stimulate economic activity in Hong Kong, benefiting asset performance [1] - Lower interest rates are anticipated to reduce corporate financing costs and encourage capital expenditure [1] Group 2 - The recent data indicates that the "stagflation" effect from tariffs on the U.S. economy is becoming apparent, with a more pronounced downward trend in employment compared to rising inflation [1] - The Fed's statement has notably shifted regarding the labor market, emphasizing rising unemployment risks and changes in risk balance, reflecting a greater focus on employment issues [1] - The dot plot has significantly shifted downward, with median rate forecasts for the end of this year and next year both lowered by 25 basis points, indicating a dovish policy stance [2] Group 3 - There are still divisions among Fed members regarding the extent of rate cuts, as some members advocate for a 50 basis point cut instead of 25 [2] - The uncertain economic outlook and frequent expressions from the U.S. government regarding monetary policy preferences may weaken the predictability of future monetary policy [2]