CICC: The Federal Reserve has limited room for interest rate cuts, and the economy faces the risk of "stagflation."

According to Jinshi reports, the CICC research report pointed out that the Federal Reserve maintained interest rates at the March meeting, which aligns with market expectations. The dot plot and economic forecasts indicate an upward revision of inflation expectations, narrowing the space for interest rate cuts, and the overall policy orientation is cautious.

Although Powell believes the economy remains resilient, CICC believes that the U.S. economy is entering a "stagflation-like" phase, and the Federal Reserve may continue to hold steady in the short term, with interest rate cuts postponed until the second half of the year.