CICC: Fed Rate Hikes Are Not Over, But No Need to Rush

深潮 TechFlow reported on October 29 that, according to a CICC research note, the Federal Reserve held rates steady in October. Policymakers remain firmly committed to fighting inflation, but also believe policy can remain patient. Some hawkish officials have shifted to a wait-and-see stance, indicating reduced urgency for consecutive rate hikes. Since the September hike, U.S. financial conditions have tightened at the margin and the inflation premium has eased somewhat, allowing the Fed to wait for policy effects to become more apparent. Looking ahead, we expect another rate hike in December, followed by continued wait-and-see. This round of rate hikes is more likely to be a moderate, gradual adjustment rather than aggressive tightening. In addition, Warsh announced that starting next year he will reduce the frequency of rate-setting votes, with some meetings dedicated to discussing long-term monetary policy strategy. This is also a continuation of the Fed policy framework reforms he has promoted since taking office. For the market, the short-term risk of the Fed tightening more than expected has declined, while the medium-term stance will remain somewhat restrictive. (Jin10)

Source: 深潮 TechFlow