1. The basic logic of the Fed’s interest rate cut An interest rate cut by the Fed refers to a reduction in the federal funds rate, which is the interest rate for short-term lending between commercial banks. Its purpose is to stimulate corporate investment and consumer demand and alleviate the downward pressure on the economy by reducing capital costs. The specific impacts of interest rate cuts include: Reduced capital costs: Loan costs for businesses and individuals are reduced, promoting cre...

1. The basic logic of the Fed’s interest rate cut An interest rate cut by the Fed refers to a reduction in the federal funds rate, which is the interest rate for short-term lending between commercial banks. Its purpose is to stimulate corporate investment and consumer demand and alleviate the downward pressure on the economy by reducing capital costs. The specific impacts of interest rate cuts include: Reduced capital costs: Loan costs for businesses and individuals are reduced, promoting cre...