Fed cut helps China’s economy

The US Federal Reserve’s super-sized rate cut will likely ease pressure on the yuan, giving China’s central bank more room to stimulate its own economy. The yuan is up 2.5% against the dollar since July, and the Fed’s half-point cut means Beijing can now focus on reducing its own borrowing costs as early as Friday when the central bank will set loan prime rates: “President Xi Jinping owes Jerome Powell a big thank you,” Reuters wrote.

The Fed’s decision also comes at an opportune time: Senior Chinese and US officials are meeting in Beijing this week to discuss economic concerns, including China’s overcapacity.