Li Zongguang, Director of Chengtong Securities Research Institute: The Fed's interest rate cut is more of an opportunistic behavior

Li Zongguang, director of Chengtong Securities Research Institute, said at the 2025 China Chief Economist Forum Annual Meeting that the Fed's rate cut is more of an opportunistic behavior, because the previous rate hike was very high. From the perspective of economic demand alone, such a rapid rate cut is not supported in the context of high inflation. He mentioned that if US inflation itself starts to rise in 2025 due to endogenous factors, coupled with the influence of marginal factors, if inflation rises rapidly to 4%-5%, it may force the Fed to raise interest rates, in which case the US dollar may appreciate significantly. (Shanghai Securities News)