Invesco's Asia-Pacific (excluding Japan) Global Markets Strategist Zhao Yaoting stated that the market clearly had an instinctive reaction to the unexpected dot plot forecasts, but it is important to note that dot plots can be very inaccurate. In December 2021, the Fed's dot plot anticipated an interest rate increase of less than 100 basis points for 2022, but subsequently, the Fed raised rates by more than 400 basis points in 2022.

He indicated that this rate cut is a hawkish rate cut. On the positive side, the Fed's rate cut exceeded the easing cycle of 1995-1996, when the USA economy avoided recession and subsequently experienced strong growth. Ultimately, the Fed's policy will be data-driven, so attention must be paid to the data to gain insights into the path of MMF policy.

Additionally, he mentioned that it is necessary to pay attention to whether the US dollar will be stronger than expected, as this could have adverse effects on Emerging Markets Assets.