Analysis: The Fed may cut interest rates urgently to stifle the feedback loop, and the rate cut may be larger.

BlockBeats news, on August 5th, analyst Simon White stated that the official mandate of the Federal Reserve is to address unemployment and inflation issues, but in reality, its job is to prevent a 'feedback loop' between the market and the real economy. If not controlled, it will lead to an economic recession. The U.S. economy looks no different from last week, and the increased likelihood of an economic recession is precisely due to Position causing the market to raise expectations of an economic recession. The Federal Reserve cannot save an already recession-bound economy by cutting interest rates and adjusting its balance sheet. However, it is possible to prevent the formation of a recessionary cycle before it occurs, which could help the economy avoid a recession. This is why the possibility of an early rate cut cannot be ignored. In fact, the possibility of a 50 basis point rate cut or more is also likely to rise, because in this scenario, the likelihood of a larger rate cut, if implemented, will be higher. (Jin Shi)