CITIC Securities: It is expected that the US dollar may remain weak in this round of interest rate cuts, and gold will still perform well.

CITIC Securities' research report states that the Federal Reserve will cut interest rates by 25 basis points at its September 2025 meeting, in line with market expectations. Powell stated that this was a risk-management rate cut, favoring the management of downside risks in the labor market within its dual mandate. The dot plot indicates a further 50 basis points of rate cuts this year, which is in line with expectations. CITIC Securities maintains its forecast for another 25 basis points cut at the Fed's October and December meetings. The interest rate path for 2026 will become clearer once the new Fed Chair is finally appointed. Market-wise, the "buy anticipation, sell reality" trend in US Treasuries and the "catch-up rally" trend in US stocks persisted after the rate cut, with the Dow Jones Industrial Average and small-cap stocks performing well. It is recommended to downplay the guidance provided by this meeting on the interest rate path for next year. The US dollar is expected to remain weak during this round of rate cuts, and gold is expected to continue to perform well. (Jinshi)