CICC: The Fed needs to suspend interest rate cuts before it can continue to cut interest rates

Odaily reports that the US Federal Reserve's January FOMC meeting decided to keep the benchmark interest rate unchanged at 4.25%-4.5%, in line with market expectations. Can further rate cuts be expected? A research report by China International Capital Corporation (CICC) believes that there is no need to conclude that the Fed will be unable to cut rates in the future. From the perspective of the reflexive effect of interest rates, the less expected a rate cut is, the more helpful it can be for a rate cut, just like last September when the more concerns there were about a recession, the less likely a recession actually was. Therefore, the current view that a rate cut is impossible is the same problem as the view in September that the Fed needed to cut rates significantly in succession. (Jin Shi)