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

The Federal Reserve decided to hold steady at the January FOMC meeting, maintaining the benchmark interest rate at 4.25%-4.5%, in line with market expectations. Will they be able to cut interest rates in the future? According to a research report from CITIC Securities, there is no need to assume that the Federal Reserve will be unable to cut interest rates in the future. From the perspective of the reverse effect of interest rates, the less expected the interest rate cut is, the more helpful it is to cut interest rates. Just like last September, the more worried about a recession, the less likely it is to happen. Therefore, the issue of believing that the Federal Reserve cannot cut interest rates now is the same as believing that the Federal Reserve needed to make successive large interest rate cuts in September. (Jinshi)