Last Thursday, the Federal Reserve made a significant decision to lower the target range for the federal funds interest rate by 25 basis points, bringing it to between 4% and 4.25%. This marks the resumption of the rate-cutting process by the Fed since December of last year.

The resolution was not smooth sailing; newly appointed council member Milan expressed dissent, advocating for a more aggressive rate cut, suggesting a reduction of 50 basis points. This reflects differing views within the Fed regarding the direction of monetary policy.

From the long-term outlook of Fed officials, opinions also show divergence. Among the 19 officials, nearly half (9) expect there will be two more rate cuts in 2025. Another 2 believe there may be one more rate cut, while 6 take a relatively conservative stance, believing that no further rate cuts are necessary.

This decision will undoubtedly have a profound impact on the global financial markets. Investors and analysts are closely monitoring the Fed's subsequent moves and the potential effects of this policy adjustment on asset prices.

It is noteworthy that this decision to cut interest rates did not come easily, demonstrating the Fed's efforts to balance inflationary pressures and economic growth. The direction of U.S. monetary policy will continue to be a focal point for the market, and its impact on the global economy is also worth ongoing attention.