News

Jinse Finance reported that the market generally expects the Federal Reserve to announce an interest rate cut at this meeting. One of the main focuses for investors will be how many policymakers openly oppose this decision. The foreign exchange analyst team at CIBC Capital Markets pointed out that the focus this time will be on the composition of the vote, and it is expected that there will be both hawkish and dovish dissenters. It is anticipated that Schmid and Musalem will vote in favor of holding rates steady. However, the positions of Collins and Goolsbee are harder to predict; if one or both of them dissent, it could send a stronger hawkish signal to the market.

Jinse Finance reported that some analysts believe that, in addition to guiding interest rates downward, the Federal Reserve may decide at today's meeting to begin expanding its holdings of U.S. Treasury bonds. However, the purpose of this move is different from the quantitative easing during the financial crisis or the COVID-19 pandemic—it is not intended to stimulate the economy, but rather to ensure that the scale of bank reserves can remain stable or even moderately expand in line with economic growth. (If the size of the Federal Reserve's balance sheet remains unchanged, as public demand for cash continues to rise, reserves within the banking system will gradually decrease.) New York Fed President Williams stated in a recent speech that the Federal Reserve may soon enter a stage suitable for such operations. However, it should be noted that announcing the restart of such bond purchases at today's meeting is not a certainty.