Federal Reserve spokesman Nick: Investors remain optimistic due to the Federal Reserve's significant room for interest rate cuts

Nick Timiraos, a spokesperson for the Federal Reserve, stated that the Fed lowered its short-term benchmark interest rate by 50 basis points last week to a range of 4.75% to 5%. Most officials expect another rate cut of 50 basis points by the end of December, which would bring the benchmark interest rate down to a range of 4.25% to 4.5%.

Nick believes that even if the Fed cuts rates by a full percentage point this year, corporate borrowers with lower fixed-rate loans may still face significantly higher borrowing costs for debts maturing in the next year.

Nick said it's certain that investors are optimistic because there is ample room for the Fed to cut rates. Lower rates will boost market sentiment, including signaling that the Fed will act more quickly to buffer when economic weakness appears.