Did you know?

On September 18th,those economists at the Federal Reserve had a meeting,discussing back and forth,and finally,with a "snap," they cut the interest rates by half,directly pulling them down from the high end to the range of 4.75% to 5%.

This move made the global financial market shudder,why?

Because this is the first time since the winter of 2021 that such a significant rate cut has been made,just like a sudden spring rain in winter,nourishing and a bit unexpected.

Why did the Federal Reserve do this?

To put it bluntly,the U.S.economy has been a bit "dozing off" lately and needs to wake up quickly.

Look at the stock market,it's like a roller coaster,going up and down,scaring people's hearts.

House prices are high,but fewer people are buying,and the construction of houses has slowed down.

The real estate market is like it's been frostbitten,wilted.

Moreover,although jobs are easy to find,the number of low-skilled jobs is decreasing,which is not a good sign.

Cutting interest rates is,in essence,releasing some water into the market,making it easier for businesses to borrow money and for ordinary people to spend more freely.

But on the other hand,too much water could lead to inflation,a beast to be wary of.

So,the Federal Reserve is being cautious this time,releasing water while keeping a close eye,afraid of going overboard.

This interest rate cut will cause the whole world to move.

Old friends like Europe and Japan,although their interest rates are also low,their economic growth is not fast,so the impact in the short term is estimated to be minimal.

But the emerging markets are different.

As the dollar depreciates,they welcome the god of wealth,with funds flowing in and asset prices rising rapidly.

But this good thing is not without risks.

If the wind changes one day,the funds will run faster than rabbits,and the market will be in chaos.

Speaking of our China,it is the second-largest economy in the world.

With the Federal Reserve's move,we naturally have to adjust our strings.

First,we need to keep a close eye on the exchange rate and prevent the yuan from rising too quickly,otherwise,our exports will not be profitable.

Second,the arrival of foreign capital is a good thing,but we also need to prevent them from being "one-day tourists."

We need to find ways to retain these golden phoenixes and let them lay more golden eggs here.

Moreover,our foreign exchange reserves also need to be well managed.

With the depreciation of the dollar,our dollar assets cannot shrink.

We need to find ways to increase and preserve value,and make our money bags fuller.

Faced with this complex and changeable situation,we must have strategies.

Monetary policy must be flexible,foreign exchange management must be tight,and we must also find ways to promote financial innovation to make the financial industry more vibrant.

For example,we can develop more wealth management and new technologies in finance to make the pockets of ordinary people fuller and the financial market more lively.

In addition,we must continue to promote the internationalization of the yuan,making our money useful globally.

In this way,no matter how the wind blows outside,we can hold our ground and continue to be the "ballast stone" of the global economy.

In short,the Federal Reserve's interest rate cut has brought new variables to the global economy and has also brought challenges and opportunities to us.

We must keep our eyes bright,see the situation clearly,respond flexibly,and make our money bags fuller and our lives more prosperous.

Remember,no matter how the outside world changes,our hearts must be steady,our hands must be stable,so that we can move forward steadily in the wind and waves.