The Fed has cut interest rates by 0.25% this time, but Powell has clearly emphasized that this is just a minor adjustment and does not signify the start of a rate-cutting cycle; if inflation rises again in the future, there is still the possibility of resuming rate hikes.

From the current situation, both in terms of the market and politics, a rate cut has become necessary. On the other hand, this move could be seen as a "concession" to Trump—recently the Fed has been facing some "small handles": first, the Fed itself has revised its budget by over $2.5 billion; second, Trump has applied to the U.S. Supreme Court to determine whether the president has the authority to dismiss Fed board member Cook. This series of actions will undoubtedly affect the independence of the Fed, and if Trump's demands succeed, the future Fed is likely to become a "dictatorship" of the president.