On the early morning of September 19th Beijing time, the Federal Reserve announced a 50 basis point rate cut, marking the beginning of a rate-cutting cycle. Zhang Zhiwei, Chief Economist of Bo Yin Asset Management, stated that the dot plot of this Fed meeting showed significant internal differences among the monetary committee members regarding future policy directions. Two members believed that there should be no further rate cuts before the end of the year, seven members thought only a 25 basis point cut was necessary, nine members believed in a 50 basis point cut, and one member advocated for a 75 basis point cut. This indicates that while the rate-cutting cycle has begun, the pace of rate cuts is still uncertain and will depend on labor market data in the next two months. Zhang pointed out that there had been ongoing debates in the market about whether the rate cut would be 25 or 50 basis points before the decision was made. It now seems that the Fed's concerns about the slowdown in the US economy, especially in the labor market, may have been the driving force behind this rate cut decision. The Fed may believe that the current monetary policy actions have been too slow, and therefore a substantial rate cut is necessary to keep up with the economic slowdown. He mentioned that the Fed's significant rate cut decision provides more leeway for other central banks to ease their monetary policies. For China, the central bank may cut rates but the magnitude may be smaller than that of the US rate cut, leading to a narrowing of the China-US interest rate differential. While a rate cut in China would be helpful for the economy, the macroeconomic outlook for China will largely depend on the direction of fiscal policy.