Express
CICC: Federal Reserve Will Not Act Hastily in the Face of Inflation
Summary: In a recent report, CICC stated that the Federal Reserve's decision to hold steady at the June meeting was in line with market expectations. Officials believe that policy uncertainty has decreased, but they have lowered growth forecasts and raised inflation expectations. The dot plot still indicates two rate cuts this year, but the details have ...
In a recent report, CICC stated that the Federal Reserve's decision to hold steady at the June meeting was in line with market expectations. Officials believe that policy uncertainty has decreased, but they have lowered growth forecasts and raised inflation expectations. The dot plot still indicates two rate cuts this year, but the details have become more hawkish, reflecting the cautious views within the Federal Reserve. Powell remains cautious about inflation risks and has stated that no one has strong confidence in the interest rate path they have set. We believe that the Federal Reserve has no immediate plans to cut rates and will not act hastily in the face of inflation as long as the economy allows for patience. We maintain our previous view that the next rate cut by the Federal Reserve may come in the fourth quarter.
