CITIC Securities: It is expected that the Fed will cut interest rates again at the September monetary policy meeting.

[CITIC Securities: The Fed is expected to cut interest rates again at the September meeting] CITIC Securities' research report indicates that the Fed's policy interest rate remained unchanged at the July 2025 meeting, which is in line with market expectations. Powell's remarks did not reveal much about the prospects for interest rate adjustments in September. The most noteworthy aspect of this press conference is the Fed's changing assessment of tariff-induced inflation, with Powell currently considering the notion that "tariff inflation is a one-time event" as a reasonable benchmark scenario. Under the assumption that "tariff inflation is a one-time event" combined with the fact that the U.S. economic growth is weaker than last year, a "moderately restrictive" interest rate policy should reduce restrictions. Maintaining the previous view, it is expected that the Fed will cut interest rates again at the September meeting. ( Jin10 )