The U.S. Federal Reserve's 25 basis point cut on Thursday aligns with market expectations, said Li Fuyi, associate researcher at Institute for Foreign Economic Studies under the Academy of Macroeconomic Research.
The Fed on Thursday slashed interest rates by 25 basis points amid cooling inflation and a weakening labor market, marking the second rate cut in this easing cycle.
Since earlier in the year, labor market conditions have generally eased, and the unemployment rate has moved up but remains low. Inflation has made progress toward the Committee's 2 percent objective but remains somewhat elevated, the Federal Open Market Committee (FOMC), the central bank's policy-setting body, said in a statement.
"From a policy perspective, the 50 basis point cut in September was a more precautionary move, aimed at preventing the policy from lagging too far behind developments. Moving forward, the rate cuts should slow and follow a more gradual pace, allowing enough room for policy adjustments. The Fed would lower rates by another 50 basis points by the end of the year, so the November 25 basis point cut aligns with market expectations. In terms of economic data, Fed policy mainly responds to changes in employment and inflation," Li explained the interest rate cut.
"Currently, U.S. inflation is gradually approaching the Fed's 2 percent objective. For instance, the initial core PCE figure for the third quarter was 2.2 percent. At the same time, the labor market is roughly in line with the Fed's full employment target range. In this situation, there is no urgent need for a major rate cut. A moderate rate cut also avoids overly pessimistic market interpretations of the current economic situation. This approach is an optimal solution for the Fed's delicate balance between curbing inflation and avoiding economic cooling," she said.
US Fed's 25 basis point cut aligns with market expectations: expert
Italian President Sergio Mattarella expressed his pleasure with the growing collaboration between China and Italy he has witnessed during his stay Beijing, including partnerships in space exploration and cultural heritage preservation.
Mattarella is in China for a state visit from November 7 to 12, at the invitation of Chinese President Xi Jinping.
Reflecting on his previous visits, Mattarella praised the significant changes he has witnessed in China during an elusive interview with China Central Television (CCTV) on Sunday.
Mattarella expressed his admiration for the gift he received from Xi, which included a moon-shaped ornament featuring lunar soil from the Chang'e-5 mission and a research sample scooped from the Moon. For the Italian president, the gift represents the importance of advancing space cooperation between the two countries.
"The gift that President Xi Jinping presented to me was the lunar soil sample, which is truly a novelty. It symbolizes China's remarkable technological progress and indicates vast prospects for development beyond Earth, which we should explore together. We should work hand in hand to develop and utilize these opportunities, rather than pursuing the opposite path. This precious sample left a deep impression on me. We must jointly strengthen our cooperation in space exploration in the vast universe," he said.
During the visit, Xi and Mattarella viewed some of the 56 Chinese cultural relics that Italy had recently returned, including pottery ware made 4,800 years ago. Of the relics, 53 pieces belong to China's Majiayao culture, a Neolithic archaeological culture from the upper reaches of the Yellow River, dating back 4,000 to 5,000 years.
The return process was overseen by Italy's Carabinieri Art Squad, which is primarily responsible for combating art and antiquity-related crimes and generally protecting cultural property.
"We are very proud of the Caribinieri's efforts in seizing cultural artifacts from around the world and returning them to their countries of origin. These relics showcase the fascinating and rich art of ancient China, which is an important heritage. I am very pleased to see the cooperation between Italy and China in this field," said Mattarella.
Asked about his reference to a poem by Su Shi, a renowned Chinese poet of the Song Dynasty (960-1279), in his speech at Peking University on Saturday, Mattarella emphasized the shared rich cultural heritage between Italy and China.
"Both Italy and China boast rich cultural legacies, and we are poised to embrace a better future ahead. For me, this was an important and delightful experience. Seeing the students' focus and enthusiasm, what I said was not as important as the insights they gained," he said.
Italian president delighted in space, cultural cooperation with China
