The Fed cut rates by 25 bps, causing the USD to drop. Gold rebounded, and silver hit new highs.

On Wednesday, the Federal Reserve cut interest rates by 25 basis points as scheduled and will conduct $40 billion in net asset purchases this month. The US dollar index fell amidst intense volatility, ultimately closing down 0.60% at 98.65; The benchmark 10-year Treasury yield ultimately closed at 4.1550%, while the 2-year Treasury yield sensitive to the Federal Reserve policy rate closed at 3.5530%. The Federal Reserve cut interest rates by 25 basis points as scheduled to 3.50% -3.75%, but issued a "dovish pause" signal due to serious internal disagreements (10-3 vote, only reserving one rate cut in 2026). After the resolution, the US dollar index plummeted by 0.6%, the 10-year US Treasury yield plummeted by 0.88%, spot gold rebounded by 0.5% to close at $4228.47 per ounce, and silver surged to $61.85 per ounce, setting a new historical high. It has surged 113% this year. The United States seized oil tankers off the coast of Venezuela, causing oil prices to reverse their downward trend and close higher. WTI crude oil had previously fallen by over 1%, but ultimately closed up 0.93% at $58.82 per barrel; Brent crude oil ultimately closed up 0.84% at $62.49 per barrel.