The interest rate will be cut at 2 AM tomorrow, and Powell will speak at 2:30.

Lowering interest rates is definitely a good thing. Although there is a process for the transmission of money, the financial market is very sensitive.

Interest rate cuts can either be preventive or an emergency response to a crisis. Although employment has declined, overall it seems okay. My personal judgment is that this time it is a preventive rate cut. The kind seen in March 2020 was an emergency cut, where rates were slashed by 150 basis points in two weeks, and the market still kept crashing.

Returning to the market, this time a 25 basis point cut is a good thing, in line with market expectations. It may lead to a short-term pullback as the benefits are realized, or it could surge with the announcement before adjusting again. However, in the long run, it is a positive development. Not cutting or cutting by 50 basis points would be negative; cutting too much could lead the market to anticipate a recession.

The ideal scenario is to have 2-3 rate cuts of 25 basis points this year; if we notice that the rate cuts start to accelerate, we need to be cautious instead.

Starting from tomorrow morning, there will be significant fluctuations in the market, especially with Powell's speech. Every word could lead to volatility, and it is highly likely that the price will remain unchanged while orders disappear. It is best not to engage in short-term trading tonight, as it is purely a gamble on the size.