CICC: Federal Reserve sets conditions for rate cut in September
CICC research report stated that Federal Reserve Chairman Powell has raised the possibility of a rate cut in September, but it would require continuous slowing of inflation and cooling of the labor market. We believe that the Fed has a certain inclination towards a rate cut, but officials still want to see more data supporting the decision rather than making a premature move. This means that a rate cut in September may or may not happen. The possibility of no rate cut stems from the fact that the US economy is still performing well, and the reasons for a rate cut may not be compelling enough. In summary, current US economic indicators are showing mixed signals with some weakening and some recovering. For the Fed, the best strategy is to remain patient and take action after the economic data meets the criteria for a rate cut
Jinshi Data reported on August 1st that the CICC research report stated that Federal Reserve Chairman Powell raised the possibility of a rate cut in September, but it would require continuous slowing of inflation and cooling of the labor market. We believe that the Fed has a certain inclination towards a rate cut, but officials still want to see more data supporting the rate cut rather than making decisions on the "left side". This means that a rate cut in September may or may not happen. The possibility of not cutting rates comes from the fact that the performance of the U.S. economy remains robust, leading to insufficient reasons for a rate cut. In summary, current U.S. economic indicators are showing some weakening and some recovery, presenting a rather mixed state. For the Fed, the best response is to remain patient and take action after economic data meet the rate cut criteria