Sou Hu Cai Jing·2025-10-30 01:29Core Viewpoint - The Federal Reserve has decided to lower the federal funds rate target range by 25 basis points, indicating a shift in monetary policy direction, but the overall tone remains cautious regarding future rate cuts [1] Group 1: Federal Reserve Actions - The Federal Reserve's decision to cut the federal funds rate by 25 basis points reflects a more dovish stance, yet Chairman Powell's comments suggest a hawkish bias, indicating that a rate cut in December is not guaranteed [1] - The Fed is expected to end quantitative tightening (QT) in December, which is primarily a technical decision rather than a signal of a significant policy shift [1] Group 2: Market Implications - There is a growing consensus within the Federal Reserve to pause further rate cuts, suggesting that the pace of future rate reductions may slow down [1] - The effectiveness of the current rate cut may be weaker than in previous cycles due to a noticeable reduction in the "refinancing effect" [1] - Given the substantial room for further rate cuts, the necessity for purchasing unconventional financial assets is diminished [1]