The Federal Reserve's rate cuts may exceed market expectations, leading to a short-term return of dollar easing trades.
ChainCatcher News, according to Jinse Finance, a research report from CICC states that the final rate cut by the Federal Reserve may exceed market expectations, and a dollar easing trade may return in the short term. The report points out that it will be difficult for the Federal Reserve to "shrink its balance sheet" in the short term, but the threshold for "expanding the balance sheet" and quantitative easing has risen, and monetary-fiscal coordination may be achieved by increasing the rate cut and issuing short-term Treasury bonds by the Treasury Department. The steepening of the US Treasury yield curve will benefit US bank stocks.
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