Huatai Securities: Fed is expected to hold steady in July and may cut interest rates twice between September and December.

On July 29, Huatai Securities research report stated that at 2 a.m. Beijing time on July 31 (Thursday), the Fed will announce the decision from the July interest rate meeting. Although Trump has repeatedly pressured Powell to cut interest rates since the June meeting, and some members within the Fed have called for a rate cut in July, considering the overall job market is better than expected and tariffs will gradually transmit to inflation in the future, it is expected that the Fed will likely remain unchanged at the July meeting. Looking ahead, Huatai Securities believes that future rate cut decisions will depend on the economic data from July to August, and maintaining a weakening job market will prompt the Fed to make a judgment on two preemptive rate cuts between September and December.