Core Viewpoint - The Federal Reserve's recent interest rate cut has led to a decline in dollar deposit rates across various banks, indicating a broader trend of decreasing returns on dollar-denominated investments [1][3][7]. Group 1: Interest Rate Adjustments - The Federal Reserve announced a 25 basis point rate cut, bringing the federal funds rate target range to 3.75% to 4.00% [1]. - Xi'an Bank adjusted its dollar deposit rates, with 1-month, 3-month, 6-month, 1-year, and 2-year rates now at 3.2%, 3.6%, 3.98%, 3.98%, and 3.6% respectively, all entering the "3" range [1]. - Nanjing Bank also lowered rates for certain dollar deposit products, with rates for 6-month and 1-year products dropping from 3.3% and 3.6% to 3.2% and 3.3% respectively [2]. Group 2: Market Trends and Predictions - The overall decline in dollar deposit rates is attributed to the Federal Reserve's easing monetary policy, which aims to reduce banks' funding costs [3]. - Analysts predict that the Fed may continue to lower rates, potentially leading to further decreases in dollar deposit rates in the coming years [3]. - The average annualized yield for dollar cash management products has decreased to 3.879%, reflecting the impact of the Fed's rate cuts [6]. Group 3: Investment Strategies - With the decline in dollar deposit attractiveness, experts recommend diversifying investments rather than relying solely on dollar deposits, suggesting a mix of dollar bond funds and other financial products [7]. - The report indicates that by early 2025, the dollar may still be the preferred currency for deposits, but other currencies like the euro and yen may surpass it in yield [8]. - Investors are advised to consider both interest income and exchange rate fluctuations to maximize returns from foreign currency deposits [8].