The Federal Reserve may cut interest rates more than the market expects, and the dollar's easing trade may return in the short term.

According to ChainCatcher, citing a report from Jinshi, a research report from CICC states that the Federal Reserve's final interest rate cut may exceed market expectations, and the dollar easing trade may return in the short term. The report points out that the Fed is unlikely to "shrink its balance sheet" in the short term, but the threshold for "expanding its balance sheet" and quantitative easing has risen, potentially achieving monetary-fiscal coordination through increased interest rate cuts and the issuance of short-term Treasury bonds. A steepening of the US Treasury yield curve will benefit US bank stocks.