Economic Outlook - The Federal Reserve lowered the federal funds rate by 25 basis points to a target range of 4%-4.25% amid concerns over deteriorating employment conditions[5] - The updated economic projections indicate a slight increase in GDP growth expectations for 2025, 2026, and 2027 to 1.6%, 1.8%, and 1.9% respectively, compared to previous forecasts[10] - The unemployment rate forecast for 2025 remains at 4.5%, while the median projections for 2026 and 2027 have been lowered to 4.4% and 4.3%[10] Employment Risks - August's non-farm payrolls added only 22,000 jobs, indicating a significant slowdown in employment growth[22] - The current employment situation shows characteristics of "no job growth," which is rare and suggests a potential economic downturn[30] - The deterioration in the job market is expected to suppress economic growth and weaken resilience, with consumer spending likely to decline as income growth slows[28] Monetary Policy Implications - The current interest rate environment is characterized as a dovish scenario, with expectations for continued rate cuts in the near future[55] - The market anticipates a 4%-6% depreciation of the US dollar index (DXY), targeting a range of 91-93 during this easing cycle[59] - The potential for a rebound in employment post-rate cuts is uncertain, with risks of further job market deterioration[46] Asset Market Trends - In the context of ongoing monetary easing, asset prices are expected to trend positively, with gold likely to see moderate gains amid various macroeconomic scenarios[72] - The stock market is supported by high-risk appetite, as lower bond yields tend to boost equity prices[67] - The long-term interest rates are expected to remain under pressure, with a steeper yield curve anticipated as the Fed continues its easing policy[51]
就业风险催化持续性降息周期启动