China Financial Research reported that the recent tightening of financial conditions in the United States, some Federal Reserve officials suggested that the tightening of financial conditions can replace the interest rate hike to a certain extent, "we agree with this view, if the long-term interest rate can rise spontaneously, the need for the Federal Reserve to cut interest rates will decline."
But even if the Fed "stays on hold" in November, Powell's attitude will be difficult to soften, especially after the release of September inflation data, let alone be interpreted by the market as a lax anti-inflation attitude. As a result, CICC expects Fed officials to speak more cautiously in the coming weeks, and any comments that could be interpreted as dovish by the market will be redundant and unnecessary.