<p>The Fed's interest rate cuts can be divided into relief-type and preventive-type, with the former usually taking place after an economic recession, and the latter before a recession occurs. Recent US economic data shows an increase in rate cut expectations, which is expected to impact global asset prices. Historically, relief-type rate cuts occur after a crisis, with large magnitude and long duration; preventive rate cuts have a high success rate, with good performance in equity assets. The interest rate cutting cycle will be a key factor in asset price volatility in the second half of the year</p>

- Recent U.S. inflation data continues to decline, with high-frequency economic indicators weakening, leading to market expectations of a Fed rate cut in September. The Fed's rate cuts in the second half of the year will be a key factor influencing global asset prices. Analyzing historical Fed rate cuts reveals patterns in response to regional/global crises, with significant impacts on asset prices. 
- Relief rate cuts, like those in 1989, aimed to address economic recessions caused by crises, leading to significant economic stimulus and recovery. The Fed's preventive rate cuts, such as in 1995, were implemented to mitigate economic slowdown risks before a recession. These actions have historically influenced equity, bond, currency, and commodity markets differently. 
- Asset performance during rate cuts shows equities often rise after preventive cuts, while bonds generally see lower rates, and the dollar weakens. Gold tends to rise significantly after relief cuts, while oil prices show mixed reactions. Looking ahead, the Fed is likely to initiate rate cuts, potentially boosting A-share market inflows amid improving domestic fundamentals and policy support for growth.

The impact of successive Fed rate cuts on asset prices