U.S. Federal Reserve’s Rate Cut Expectations and Global Economic Impact 1. Overview The U.S. Federal Reserve (Fed) is signaling a possible rate cut in late 2024 or early 2025. Inflation Slowdown: The U.S. Consumer Price Index (CPI) is stabilizing, creating conditions for a rate cut. Economic Slowdown: High interest rates have reduced corporate investment and consumer spending. Global Financial Market Reaction: Investors are responding to potential rate cuts, influencing stock and bond markets. 2. Key Issues 2-1. Impact on Financial Markets Stock Market Rally → Lower rates reduce borrowing costs, boosting corporate profits. Bond Market Stability → Falling interest rates increase bond prices. Weaker Dollar & Currency Volatility → A weaker dollar may lead to capital inflows into emerging markets. 2-2. Impact on South Korea Exchange Rate Fluctuations → A weaker dollar could strengthen the Korean won, affecting exporters. Real Estate Market Recovery → Lower interest rates ...