China's Yuan Interbank Rate Hits Highest Level Since November 2024, Trump Calls for Rate Cut, Traders Bet on More Aggressive Rate Cuts from the Fed Next Year
On July 24, China's yuan interbank rate hit a record high of 7.1385, rising by 29 points. This is the highest level since November 6, 2024.
Trump's calls for rate cuts have an impact, traders bet on more aggressive rate cuts from the Fed next year
Facing US President Trump's almost daily calls for the Fed to cut interest rates, although the market does not believe this will affect current monetary policy, traders have quietly placed bets that the Fed will be more aggressive in cutting rates next year.
The SOFR futures contract, which expires in December of both years, shows that traders currently expect the Fed to cut interest rates by 76 basis points next year, compared to an expectation of only 25 basis points in April. This shift also shows that the market is increasingly believing that after Powell's term ends in May next year, the Fed will follow the White House's demands and cut interest rates.
Source: Sina News