Hexun Investment Advisor Liu Wenbo: Fed Interest Rate Decision Last Night - How to Understand It?

On the evening of March 18, Liu Wenbo from Hexun Investment Advisory stated that last night the Federal Reserve concluded this rate-setting meeting, maintaining the current interest rate. The dot plot indicates there will be one more rate cut this year and next year, but the final remarks of the meeting contain hidden signals. Currently, the global situation is turbulent, and the rate cut process is slower than expected. As a result, international markets, especially the U.S. stock market, generally declined last night. This morning, markets around Asia-Pacific, including Japan and South Korea, opened significantly lower, and it is expected that the A-shares will also open lower this morning. Looking domestically, despite recent international instability, the A-share performance has not been particularly strong. However, within the global stock markets, the A-shares have shown relatively stronger momentum over the past month. Therefore, after a series of declines, once clear signs of stabilization appear in the A-shares, we have reason to believe they will continue their own rhythm. In summary, the large cycle of U.S. rate cuts has not yet ended, and short-term geopolitical disturbances are the main cause of market volatility. Meanwhile, the A-shares have demonstrated their own operational rhythm. Everyone need not be influenced by external markets; focusing on the A-share market is sufficient.

(Edited by Zhao Yanping HF094)

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