CICC Research Report: The Federal Reserve's First Rate Cut May Be Delayed Until the Second Quarter

According to Jin10 reports, the CICC research report pointed out that the Federal Reserve kept interest rates unchanged at the January meeting, which aligns with market expectations. Governor Waller cast a dissenting vote, possibly related to his desire to be nominated as the next Federal Reserve Chair.

Powell stated that monetary policy is "in a good place," indicating that the threshold for another rate cut in the short term has increased. CICC expects the Federal Reserve to still be able to cut rates twice in 2026, but the first rate cut may be delayed until the second quarter.