CICC: The Federal Reserve may only cut interest rates once this year, likely in the fourth quarter
The research report from China International Capital Corporation pointed out that the Federal Reserve maintained the interest rate unchanged at its May meeting, which was in line with expectations. The monetary policy statement acknowledged inflation stickiness, and Powell expressed a lack of confidence in cutting rates, indicating that the threshold for the Fed to cut rates has significantly increased. Powell also ruled out the option of raising rates while announcing that balance sheet reduction will soon slow down, which relieved the market. Overall, we believe that this guidance from Powell is quite reasonable; he did not lead to rate cuts as before, which is correct and good for the market. We maintain our previous judgment: The Fed may only cut rates once this year, likely in the fourth quarter.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Japan’s largest opposition party disbands! Political resistance faced by Sanae Takaichi decreases sharply, but expansionary fiscal policy is constrained by the ‘red line’ of the bond market
Japan's largest opposition party has effectively split. As Prime Minister Sanae Takaichi approaches one year in office and continues to strengthen her position, there will no longer be a unified force within the powerful House of Representatives to provide effective checks and balances against her.

Hartadinata Abadi announces independent shareholder meeting plan
Hetzer Medical says unaware of material information behind MEDS share price, volume spike
Asuntosalkku publishes update to financial calendar for fiscal 2026-2027