After the Fed meeting, interest rates were cut by 0.5%, marking the beginning of a rate-cutting cycle. Christian Hoffmann, Fixed Income Head at ShangBo Investment Management, stated that the Fed has always been clear and transparent in conveying its actions through public speeches and appearances over the years. However, today's decision to cut rates by 50 basis points is filled with uncertainty. The dissenting votes indicate that the discussions in this meeting were quite intense. Christian Hoffmann mentioned that when the meeting minutes are released in a few weeks, it will be a document worth reading carefully. Considering this is the first time since 2005 that a board member has cast a dissenting vote, it is clear that the Fed is not only struggling between doing too much and doing too little but also discussing market signals, even more subtle political images, and historical legacy issues. Powell was very dovish at the Jackson Hole Global Central Bank Annual Meeting, focusing on the labor market. Economic data since that meeting has hardly changed, and Christian Hoffmann believes that the 50 basis points rate cut aligns with his tone. However, Christian Hoffmann believes that the preparation for this meeting was not ideal. Market expectations for rate cuts of 25 and 50 basis points were almost equal, a situation that is bound to disappoint some people. In addition, the US stock indexes have been rising almost every day last week, approaching historical highs accompanied by high valuations, while benchmark bond yields have reached their lows for the year. The bond market reacted differently immediately, with the stock market happily rising, but Christian Hoffmann is concerned that there may be a pullback in the future. Christian Hoffmann points out that the debate between 25 and 50 basis points is not the key issue. Although the true neutral rate is uncertain and unknown, it is clearly above this level, in a tightening range, and gradually approaching neutrality. The bank advises investors to carefully monitor the future rate-cutting path. Market expectations for rate cuts far exceed the messages conveyed by the Fed. The Fed seems to have succumbed to market pressure. Over the next 7 weeks before the next Fed meeting, there will be a fierce political election and several important economic data releases, which will be the focus, especially in a rapidly changing economic environment. The Fed and the market are more in agreement that the rate cuts in the next two years will be around 100 basis points.