Zhejiang Merchants Securities: There is a possibility of a reversal in the Federal Reserve's interest rate cuts, and attention should be paid to the risks of balance sheet reduction

ChainCatcher news, according to Jinshi reports, the macro research team of Zheshang Securities stated that the Federal Reserve is expected to cut interest rates by 25 basis points this month, and the dot plot anticipates two consecutive rate cuts in the remaining two meetings of the year. Powell pointed out that this rate cut is a "risk management" cut. Although the dot plot indicates that there is still room for rate cuts this year, Zheshang Securities believes that there is still a possibility of a reversal in easing expectations, mainly due to changes in the core momentum of the U.S. economy and the stability of the unemployment rate.