US Economy Puzzle: Urgency Over Rate Cuts and Future Trends

On the global economic stage, the United States has always played a pivotal role. However, the current U.S. economy is like a giant ship swaying in a storm, filled with uncertainty and crisis.

The employment data for the United States in September was like a boulder thrown into a calm lake, causing a thousand ripples. The number of new non-farm jobs far exceeded expectations, and the unemployment rate declined. Behind these seemingly beautiful numbers, however, lies a deep crisis. When the employment data for August was poor, the market was pessimistic, believing that the U.S. economy was about to fall into the abyss of recession. But just one month later, the reversal of the data plunged the market into confusion. Has the U.S. economy really suddenly improved?

The Federal Reserve's interest rate decisions have made the market feel like it's on a roller coaster. The substantial interest rate cut of 50 basis points on September 18, which should have been a strong stimulus for the economy, triggered market panic. History has shown us that every time the Federal Reserve makes a significant interest rate cut, it often foreshadows that the U.S. economy will face difficulties. This is not baseless speculation, but a lesson from the harsh realities of the past, from the oil crisis to the internet crisis, and then to the subprime crisis, all have been the case.

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However, when everyone was worried about the prospects of the U.S. economy, a series of actions by the Eastern power brought new vitality to the global market. The introduction of stimulus measures led to a surge in A-shares and Hong Kong stocks, and the real estate market also regained its liveliness. At this time, those American investment institutions that were once full of confidence in the U.S. economy missed this feast due to wrong decisions. Take BlackRock as an example, shifting funds from the Hong Kong stock market to the Indian stock market, only to be defeated in this super trend. Under pressure from clients, they had to repurchase at high prices, and other institutions followed suit.

But the United States' attempt to retain the dollar by releasing beautiful employment data is just a self-deceptive trick. The difficulties of the U.S. economy are profound, with large-scale layoffs in the technology industry, closures of bank branches, a significant increase in corporate and individual business bankruptcy filings, and a national debt of up to $35.68 trillion. These are like heavy shackles, restricting the development of the U.S. economy. Without a substantial interest rate cut, the United States will be dragged down by debt; but with a substantial interest rate cut, opponents will take the opportunity to rise. The United States is in a dilemma, and no matter how it chooses, it seems difficult to escape the fate of economic decline.

The United States is like a ship with a thousand holes, constantly repairing and trying to cover up problems, but this cannot change its ultimate fate of sinking. The once invincible "white-headed eagle" has now shown signs of fatigue, slow to react and stiff in movement.

The future of the U.S. economy is full of fog, and the global economic pattern is also quietly changing. In this era full of challenges and opportunities, we should keep a clear mind, closely monitor the global economic dynamics, and prepare for the future of our country and people. Because in this economic storm, only those countries that can judge the situation and have the courage to innovate can stand invincible in fierce competition.