According to a research report from Huatai Securities, the Federal Reserve is poised to announce its interest rate decision during the July meeting on the morning of July 31, Beijing time. Despite President Trump's repeated pleas for rate reductions and the advocacy of certain Fed officials for a July rate cut, the Fed is anticipated to keep interest rates steady. This stance is attributed to the robust job market performance, which has exceeded expectations, and the potential inflationary impacts of tariffs. Additionally, the U.S. Treasury's bond issuance schedule and duration risks for this week merit attention. Future decisions on interest rate cuts will hinge on economic data from July to August. Huatai Securities upholds its prediction that a weakening job market will necessitate the Fed to preemptively lower interest rates twice between September and December.
