The Federal Reserve's interest rate cut may exceed market expectations, and short-term dollar easing trading is returning

ChainCatcher News, according to Jinshi reports, China International Capital Corporation (CICC) research reports suggest that the Federal Reserve’s eventual rate cut could exceed market expectations, and dollar easing trades may return in the short term. The report points out that the Federal Reserve will find it difficult to “balance sheet reduction” in the near term, but the thresholds for “balance sheet expansion” and quantitative easing are rising, potentially achieved through increasing the rate cut magnitude and short-term Treasury issuance by the Treasury Department to realize monetary-fiscal coordination. The steepening of the U.S. Treasury yield curve will benefit American bank stocks.