Mitsubishi UFJ: The Federal Reserve has not entered an interest rate cut sprint mode.

George Goncalves, head of macro strategy at Mitsubishi UFJ Financial Group in the United States, said that the Fed's decision this time was the most dovish stance the Fed could take, and they added another rate cut to their dot plot expectations for this year. However, it feels like the Fed has not entered a rate cut sprint mode, they have just restarted the rate cutting process because they acknowledge that the labor market is not as strong as they had anticipated. This is also why risk assets have had a muted reaction. The Fed may cut rates by 25 basis points each in October and December, but a 50 basis point rate cut may not necessarily be beneficial for credit.