Damo: The Fed is expected to hold on next week

On 24 July, Morgan Stanley strategist stated in a report that recent data indicated that the Federal Reserve would remain in place at its July meeting and that interest rates would likely remain unchanged for the remainder of the year. They wrote, "The Fed is losing patience for higher-than-target inflation. The trend of inflation in the coming months is crucial — we expect that inflation will fall as expected — otherwise the Fed may turn to interest rates later this year.” The currency market has now absorbed the Fed's expectations of increasing interest rates almost twice before the end of the year. However, the slowdown in inflation may prompt the Fed to maintain interest rates this year at between 3.50 and 3.75 per cent. “We expect that the fall in inflation will keep the Fed on track this year.” Kim Xian