Recently, the Federal Reserve announced to cut the target range of the federal funds rate by 25 basis points. This is the Fed 's first rate cut in 2025. Regarding the impact of the Fed 's interest rate cut, Gongsheng PAN, the governor of the People 's Bank of China, said recently that global financial markets had full expectations for the Fed 's interest rate cut, and the market reaction was relatively stable. Gongsheng PAN pointed out that China 's monetary policy adheres to self-centered, taking into account internal and external balance. In recent years, China has been continuously optimizing the monetary system and monetary policy tools, and the effect of monetary policy transmission mechanism has been increasing. It actively guides social savings to the track of new quality productivity, and supports financial institutions to carry out five major articles related to business, so as to promote capital circulation, expected improvement and value creation. This monetary policy model of aggregate demand management through precise drip irrigation has attracted global attention. It is this optimization of monetary policy ecology that makes the position of China 's central bank 's monetary policy supportive, which can not only ensure liquidity, but also leave space for future monetary policy. Professor Lijian SUN, director of the Financial Research Center of Fudan Development Research Institute, was interviewed by the 21 st Century Economic Report to interpret the relevant issues. He believes that the Fed 's interest rate cut is stable in the short-term market but needs to guard against medium-and long-term risks ; china 's monetary policy is  self-oriented.  It is necessary to deal with several pairs of key relationships, promote the internationalization of the RMB by changing the direction of trade, promote the  double circulation  and the unified national market to help consolidate the ecological resilience of the currency, balance the  precise drip irrigation  of credit and the liquidity of the capital market, and consolidate the financial resilience and serve the real economy in the  15th Five-Year Plan  to cope with external shocks.

Translated by Zifei ZHENG

Full text in Chinese available at:

https://fddi.fudan.edu.cn/6d/7d/c18965a748925/page.htm