The Federal Reserve is paving the way for interest rate cuts, but emerging economies still need to maintain rational expectations

Media reports suggest that signs are pointing to the Federal Reserve's monetary policy nearing a cyclical shift. The market is currently high on expectations for a Fed rate cut in September. Overall, conditions for a Fed rate cut have matured and we are about to enter a new easing cycle. If the Fed chooses a relatively mild rate cut model in the future, international financial markets may not fluctuate significantly, but developing countries and emerging economies still need to maintain rational expectations of the Fed's interest rate cuts, plan for the worst-case scenario, and prepare appropriate responses.