Expert： It’s a preventive measure.

　　CCTV News:What signals did the Federal Reserve announce to cut interest rates for the first time in more than a decade? Let’s look at the analysis of economic experts.

　　Economists believe that the US economy is facing a series of uncertainties, and the overall economic growth has "slowed down", which will play a preventive role in cutting interest rates this time.

　　Wen Bin, chief researcher of Minsheng Bank:In the past, the Federal Reserve has raised interest rates nine times in a row since the monetary contraction, so it should be said that it is still slightly higher than its neutral level. Therefore, faced with the current global economic contraction slowdown, including the intensification of trade frictions, the US economy has actually shown a trend of slowing down. Under such a background, the Federal Reserve has cut interest rates by 0.25 percentage points in order to cope with the risk of possible economic downturn, which is actually a preventive interest rate cut.

　　Economist Guan Tao, Ph.D. Supervisor of Economics, Wuhan University:One of the main reasons why the Fed is considering cutting interest rates is that inflation is not below its target of 2%, and the economy has been under downward pressure recently. As a preventive measure, the policy has made some advances.

　　Experts predict that the Fed’s interest rate cut will have different impacts on the global market.

　　Economist Guan Tao, Ph.D. Supervisor of Economics, Wuhan University:The normalization of monetary policy led by the Federal Reserve is the main reason for the strength of the US dollar in the past few years. The strength of the US dollar has also brought a relatively big impact on other markets. Now the Fed’s interest rate cut is conducive to alleviating the pressure of the continued strength of the US dollar and bringing some relief to the external shocks of other emerging markets.

　　Wen Bin, chief researcher of Minsheng Bank:Then, from the exchange rate point of view, with the weakening trend of the US dollar index, some safe-haven varieties will show a good trend accordingly. For example, the price of gold, including the yen, may rise, so from the perspective of the bond market, there should be room for further interest rate cuts with this interest rate cut, so the yield of the whole creditor’s rights will decline, which will also bring a short-term benefit to the bond market.