Business and Technology
China’s Rate Cuts and its Impact on the United States
On Tuesday, Sept. 24, 2024, China announced that its central bank, the People’s Bank of China, will cut its seven-day interest rate from 1.7% to 1.5%. The rate cut, along with a 1 trillion yuan liquid injection, aims to boost their economy that was affected by the COVID-19 pandemic.
A New Era of Uncertainty?
Analysts believe that what is happening now is a shift in the market narrative. A fear of higher-for-longer interest and bond rates has turned into increasing hope for rate cuts and a gentle economic landing, with low inflation data throwing that shift into overdrive.
Markets Cheer The End of A Troubled Era
Thursday marked a period of raucous celebration on Wall Street, as comments from the Federal Reserve on Wednesday increased hopes of an end to a two-year long period of rapid rate hikes.