1. Economic Growth Slowdown:

Decline in GDP Growth Rate: The GDP growth rate, a key indicator of economic growth, is not meeting expectations, reflecting a decrease in overall economic activity. This situation can suppress corporate production and operation activities, as well as investment expansion to a certain extent. In such circumstances, lowering interest rates can reduce the financing costs for businesses, encouraging them to increase investments and expand production scales, thereby stimulating economic growth.

Poor Labor Market Performance: Employment data serves as an important barometer of economic conditions. If the unemployment rate rises and the number of new jobs decreases, it implies that there is insufficient demand for labor from economic activities. Lowering interest rates can stimulate businesses to increase investment and production, thereby creating more job opportunities and alleviating employment pressure.

Decrease in Consumer Spending: Consumption is a significant driver of the U.S. economy. When consumers are worried about the future economic outlook, or when other factors lead to a decrease in willingness to consume and a reduction in consumer spending, it can affect economic growth. Lowering interest rates can reduce the borrowing costs for consumers, encouraging them to be more willing to engage in major consumption such as buying homes and cars, thus driving economic growth.

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2. Inflation Rate Below Target Level: Moderate inflation is beneficial to economic development, and excessively low inflation may indicate insufficient economic vitality. The Federal Reserve's inflation target is typically around 2%. If the inflation rate remains below this target for an extended period, the Federal Reserve may choose to lower interest rates to promote currency circulation in the economy and raise price levels.

3. Global Economic Uncertainty:

International Trade Tensions: Trade frictions and barriers between the U.S. and other countries can affect U.S. exports and imports, having a negative impact on the economy. Lowering interest rates can enhance the price competitiveness of American goods in the international market to some extent, promoting exports. At the same time, lower interest rates can also stimulate domestic demand, reducing reliance on imports.

Geopolitical Risks: Regional political instability and conflicts can affect the global economic order and market confidence, indirectly impacting the U.S. economy. The Federal Reserve's interest rate cuts can provide a certain buffer for the U.S. economy to some extent, enhancing its ability to resist external shocks.

4. Government Debt Burden Pressure: The U.S. government has a large debt scale, and as interest rates rise, the interest payments the government needs to make also increase significantly, placing a heavy burden on the budget. Lowering interest rates can reduce the government's debt interest expenditure, allowing the government to allocate more funds to other public spending programs, such as infrastructure construction and social welfare, helping to alleviate fiscal pressure.

5. Political Considerations: The U.S. government may use interest rate cuts as a means of economic and political competition with other countries. By adjusting interest rate policies, it can influence the exchange rate of the U.S. dollar and the flow of international capital, thereby affecting the economies of other countries and achieving the U.S.'s political and economic objectives.6. Demand for Financial Market Stability: Higher interest rates may exert significant pressure on financial markets, leading to stock market declines, increased bond market yields, and so on. If financial markets experience excessive volatility or instability, it may affect investor confidence and the stability of the financial system. Lowering interest rates can reduce corporate financing costs and improve corporate profit expectations, thereby having a positive impact on stock markets and other financial markets, which helps to maintain financial market stability.