CITIC Securities: The Federal Reserve is expected to remain biased towards controlling inflation risks and will not cut interest rates this year.

On July 8th, Golden Ten Data reported that CITIC Securities research report pointed out that in a high interest rate environment, the US labor market is expected to continue to cool down. The risks at both ends of the economy and inflation are somewhat balanced, but the current US unemployment rate is still at a historical low. Whether inflation returns to the sustainable track of 2% still remains to be seen. We expect the Federal Reserve to continue to lean towards controlling inflation risks, not cutting interest rates this year, and “exchanging time for space” to continue to suppress US demand and inflation.

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