Zheng Quan Shi Bao Wang·2025-10-30 00:07Core Viewpoint - The report from China International Capital Corporation (CICC) indicates that the Federal Reserve's decision to cut interest rates by 25 basis points in October was expected, but Chairman Powell's remarks were notably hawkish, suggesting that a rate cut in December is not guaranteed [1] Group 1: Federal Reserve's Stance - CICC believes that the internal support for pausing rate cuts within the Federal Reserve is gaining traction [1] - Despite having some room for further easing, the pace of rate cuts may slow down, and overly optimistic expectations should be avoided [1] Group 2: Economic Impact - The stimulative effect of the current round of rate cuts is expected to be weaker than in previous cycles, partly due to a significant reduction in the "refinancing effect" [1] - The Federal Reserve announced the end of quantitative tightening (QT) in December, which CICC interprets as a technical consideration rather than a signal for major policy shifts [1] Group 3: Investment Strategy - With substantial room for policy rate reductions, the necessity for purchasing unconventional financial assets is deemed low [1]