Sou Hu Cai Jing·2025-09-23 01:39Core Viewpoint - The Federal Reserve has announced a 25 basis point reduction in the federal funds rate target range, marking the first rate cut since December 2024, with expectations of further cuts in the near future [1][4]. Summary by Sections Federal Reserve Rate Cut - The Federal Reserve's recent decision to lower the federal funds rate by 25 basis points reflects concerns over employment growth and persistent inflation [4]. - Market expectations suggest an additional 50 basis points of cuts may occur within the year, with predictions of 25 basis points reductions in the upcoming meetings in October and December [4]. Bank Dollar Deposit Rates - Some banks in Beijing still maintain dollar deposit rates at 3% or higher, despite the recent Fed rate cut, indicating a potential adjustment in the near future [1][2]. - For instance, Jiangsu Bank offers a 1-year dollar deposit rate of 3%, while other banks like Guangfa Bank have varying rates based on deposit amounts and terms [2]. Structure of Dollar Deposit Rates - There is a noticeable divergence in dollar deposit rate structures among banks, with some banks offering higher rates for longer terms, while others provide better rates for shorter terms [2][3]. - The current structure reflects banks' expectations regarding the Fed's future rate adjustments, with a shift observed from a short-term higher rate structure to a long-term higher rate structure earlier this year [3].