The Fed's interest rate cuts have always been a hot topic in the financial markets. Some believe that the favourable information will quickly fade after the rate cuts, while others feel its impact is negligible. However, in fact, this is a significant event capable of changing the global economic landscape, and it deserves our close attention.

Looking back at the economic journey in recent years, we can clearly see the huge influence of Fed policies. During the outbreak of the pandemic in 2020, after the U.S. stock market triggered the circuit breaker mechanism three times in a row, the Fed decisively took emergency interest rate cut measures. Subsequently, the U.S. stock market quickly rebounded, and the A-share market also climbed from 2,650 points to 3,700 points within a year, showing a prosperous economic scene between 2020 and 2021.

However, at the end of 2021, the Fed announced that it would raise interest rates in a timely manner, and the A-shares fell from 3700 points to 2900 points in the following four months, with the entire interest rate hike cycle seeing a continued downturn in the A-share market. More notably, this round of interest rate hikes may have indirectly exacerbated tensions in the international situation, such as the outbreak of the Russia-Ukraine conflict, while also leading to a significant outflow of global capital to the United States, intensifying economic pressure in some countries.

Fortunately, the relative decline of China's economic strength and the United States' influence has prevented the US from over-harvesting global resources. Nevertheless, during these more than three years, the lives of ordinary people are still facing considerable pressure.

In September 2024, the Fed announced an interest rate cut, and China immediately launched a series of Favourable Information policies. The A-share market rose 1000 points within 6 trading days, forming the so-called "924 market trend". Now, after 9 months, the Fed is once again considering an interest rate cut, and China is likely to introduce corresponding supporting policies. Although it is difficult to replicate the crazy trend of the "924 market trend", the A-share market is expected to show a stable upward trend from June to August this year.

It is expected that the A-share market may find an upward trend again from the end of September to the beginning of October this year. In the next two to three years, the Chinese economy is expected to achieve a rebound from the bottom, and the quality of life for ordinary people will gradually improve, returning to a more comfortable state.

Overall, the Fed's interest rate cut decision is not only related to the US economy but is also an important factor affecting the global economic landscape. We should closely follow this trend and actively respond to the opportunities and challenges it may bring.