CITIC Securities: Still expects the Fed to raise rates by another 25bp in December

According to TechFlow, on October 29, CITIC Securities said in a research report that the Federal Reserve held rates steady in October as expected. The statement’s wording was more optimistic about the pace of economic expansion and more cautious in its guidance on the policy stance. Warsh’s post-meeting remarks were more dovish than in September, noting that credit conditions had tightened and inflation expectations had moved in the right direction, and previewing adjustments to the FOMC meeting schedule over the next two years. We still expect the Fed to raise rates by another 25bps in December, and the terminal rate of this rate-hiking cycle may not be far from current levels. New variables in the Middle East situation are not yet sufficient to provide the U.S. and Iran with a clear and durable exit path; high oil prices may persist until the situation becomes clearer, and further improvement in dollar liquidity will require new catalysts. (Jin10)

Source: TechFlow