For the first time in four years, the U.S. Federal Reserve has cut interest rates, lowering its benchmark by 50 basis points — a move expected to trigger a wave of rate cuts from central banks worldwide. The decision lifted U.S. stock indexes and pushed gold to a record high of $2,600 an ounce, while oil prices also climbed on hopes of stronger global demand.
Analysts say the Fed’s policy shift could have far-reaching effects, influencing capital flows, commodity prices, and monetary policy in emerging markets like Vietnam. The coming months will test how closely Vietnam’s financial markets move in step with Wall Street’s changing tide.
This article is a condensed and translated summary (original in Vietnamese, VN) of a feature published in the October 2024 issue of Bloomberg Businessweek Vietnam.