The Federal Reserve announced a 25 basis point cut, lowering the federal funds rate target range to 4.75%-5.00%. This move aims to address the dual pressures of falling inflation and economic slowdown by reducing borrowing costs to stimulate consumption and investment. The market generally interprets this as a shift towards an accommodative monetary policy, with U.S. stocks rising and U.S. Treasury yields falling. However, analysts note that if inflation rebounds or employment data remains strong, the Fed may tighten policy again, and the current easing cycle remains uncertain.