Overseas stock market shocks US Federal Reserves interest rate cut voice is rising again

category:Finance
 Overseas stock market shocks US Federal Reserves interest rate cut voice is rising again


In addition, market data shows that the yield of 10-year US Treasury bonds fell to 1.31% in recent days, which is lower than the record low set after the brexit referendum in July 2016.

Jim Caron, manager of Morgan Stanleys fixed income fund, said US bond yields would continue to decline as long as investors bought safety assets to offset risky investments. Wall Street analysts believe that US bond yields will continue to fall, or even fall sharply, depending on the severity of the public health and safety incident hitting the economy, and traders are increasing their bets that the Federal Reserve will relax policies to support the economy by the middle of the year.

Novel coronavirus pneumonia is affecting the market and the US Federal Reserve is expected to raise interest rates. The Chicago Mercantile Exchanges fed observation tool shows that the probability of the Fed cutting interest rates at its April meeting is more than 53%. The probability of the Fed cutting interest rates again at its June meeting is 76.2%. The probability of the Fed cutting interest rates in mid September is close to 90%.

Clarida, vice chairman of the Federal Reserve, said the Federal Reserve views public health events as a major threat to economic growth, but the extent of this is not clear yet, and it is too early to change policy. If the economic outlook changes, the Fed will respond. However, some market participants said that the market has responded to the expectation of the Feds interest rate cut, and if the Fed ignores this, it may further aggravate the market turbulence. On the other hand, if the Federal Reserve follows the markets judgement of interest rate cuts, it may encourage speculation and asset bubbles. In fact, the global supply chain is closely linked, which link is not conducive to economic development. At a recent meeting of G20 finance ministers and central bank governors, officials at the meeting have called for moderately loose monetary policy and active fiscal policy this year to mitigate the impact of the epidemic on the global economy. Source: responsible editor of Securities Times: Yang bin_nf4368

However, some market participants said that the market has responded to the expectation of the Feds interest rate cut, and if the Fed ignores this, it may further aggravate the market turbulence. On the other hand, if the Federal Reserve follows the markets judgement of interest rate cuts, it may encourage speculation and asset bubbles.

In fact, the global supply chain is closely linked, which link is not conducive to economic development. At a recent meeting of G20 finance ministers and central bank governors, officials at the meeting have called for moderately loose monetary policy and active fiscal policy this year to mitigate the impact of the epidemic on the global economy.