Analysis: Fed rate cuts may not reverse the trend of US economic slowdown

OdailySep 18, 2025
The Federal Reserve has announced a 25 basis point rate cut and will continue to reduce its balance sheet. This is the Fed's first rate cut since December 2024, and two more rate cuts are expected this year. Some analysts point out that one of the main considerations for the Fed's rate cut is the downward pressure brought about by weak employment. The Fed's "dual mandate" of resisting inflation and ensuring employment is undergoing a slight shift in focus, with stabilizing employment becoming a priority. However, due to the continued negative impact of tariffs, immigration and other policies on business and consumer confidence, the US economy may find it difficult to reverse the overall slowdown trend. In addition, rate cuts and tariffs may have a superimposed effect, making it more difficult for the Fed to achieve its inflation control target. (Golden Ten) [星球日报]
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Analysis: Fed rate cuts may not reverse the trend of US economic slowdown

OdailySep 18, 2025
The Federal Reserve has announced a 25 basis point rate cut and will continue to reduce its balance sheet. This is the Fed's first rate cut since December 2024, and two more rate cuts are expected this year. Some analysts point out that one of the main considerations for the Fed's rate cut is the downward pressure brought about by weak employment. The Fed's "dual mandate" of resisting inflation and ensuring employment is undergoing a slight shift in focus, with stabilizing employment becoming a priority. However, due to the continued negative impact of tariffs, immigration and other policies on business and consumer confidence, the US economy may find it difficult to reverse the overall slowdown trend. In addition, rate cuts and tariffs may have a superimposed effect, making it more difficult for the Fed to achieve its inflation control target. (Golden Ten) [星球日报]
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