Pu Lai Shi: The final rate cut by the Federal Reserve still has a great deal of uncertainty.

Tim Murray, Capital Market Strategist at Proliance Wealth Management, commented on the potential impact of the Fed's interest rate cut on the US economic outlook. He stated that although the Fed's previous tightening cycle was one of the fastest ever, the US economy seems to have avoided a recession. The Fed is likely to further cut interest rates, which may alleviate interest rate pressure, but this will take time, and the final extent of rate cuts still remains uncertain. In addition, the Fed's rate cuts may affect a wide range of financing activities, but the real estate market often directly reflects the stimulus of lower interest rates on the economy. Therefore, investors should adjust their expectations for the economic impact of the Fed's rate cuts in 2025. Investors are now focused on the speed of economic growth in 2025. The market is optimistic about the acceleration of economic growth in 2025, partly due to the expected economic activity growth driven by the Fed's rate cuts, which are expected to stimulate US consumer spending by lowering interest costs. However, so far there has only been a slight improvement in US consumer interest costs. Although interest rates on credit cards and new car loans have fallen, they are only about 50 basis points lower than their peak levels. At the same time, fixed-rate mortgage rates are about 135 basis points lower than their peak levels. Mortgage rates may be the most important indicator to watch, as the real estate market has a huge impact on US economic activity. As of October 22, the 30-year fixed-rate mortgage rate was 6.4%, significantly higher than the rates on most previous mortgages (calculated on a weighted average basis at 3.9%). This means that many homeowners may not be willing to sell their properties, as buying another property would require paying a higher mortgage rate.