stagflation-like

According to Jinshi reports, the CICC research report pointed out that the Federal Reserve maintained interest rates at the March meeting, which aligns with market expectations. The dot plot and economic forecasts indicate an upward revision of inflation expectations, narrowing the space for interest rate cuts, and the overall policy orientation is cautious.Although Powell believes the economy remains resilient, CICC believes that the U.S. economy is entering a "stagflation-like" phase, and the Federal Reserve may continue to hold steady in the short term, with interest rate cuts postponed until the second half of the year.

ChainCatcher news, according to Jin10 reports, the research report from China International Capital Corporation points out that the market's pricing for a Federal Reserve rate cut has significantly increased recently, but there are internal disagreements within the Federal Reserve. Some members support a rate cut, while others advocate for a wait-and-see approach. Although Trump and Treasury Secretary Mnuchin have pressured for a rate cut, China International Capital Corporation believes that the current conditions do not support a significant rate cut. The biggest risk facing the U.S. right now is "stagflation," and a rate cut cannot solve this problem. Monetary policy should focus on stabilizing inflation, and the Federal Reserve will remain cautious in its rate cut decisions.