Analysis: The Fed may cut interest rates urgently to kill the feedback loop, and the rate cut may be larger

Analyst Simon White said that the Fed's official mission is to address unemployment and inflation, but in reality, its job is to prevent a "feedback loop" between the market and the real economy, which, if not controlled, will lead to a recession. The U.S. economy looks no different than it did last week, and a recession has become more likely precisely because positioning has caused the market to raise expectations for a recession. The Fed cannot save an economy that is already in recession by cutting interest rates and adjusting its balance sheet, but if it can nip the cycle that leads to a recession in the bud before it forms, it may be able to get the economy out of recession, which is why an early rate cut is a possibility that cannot be ignored. In fact, the probability of a rate cut of 50 basis points or more will also rise, because in this case, if the rate cut does happen, the probability of a larger rate cut will be higher. (Jinshi)