On December 16, the midpoint of the renminbi was quoted at 6.3637, an increase of 79 points, the median price of the previous session was 6.3716, and the onshore renminbi closed at 6.3652 in the previous session.
The Fed officially announced that it accelerated Taper hinted at a schedule for rate hikes
The Fed announced its interest rate decision, leaving the rate unchanged at 0-0.25%, in line with market expectations. The Fed accelerated Taper to increase the size of monthly asset purchases from $15 billion to $30 billion, starting next January, by $20 billion in U.S. Treasury bonds and $10 billion in institutional residential mortgage-backed securities (MBS) per month. At the same time, the Fed signaled to speed up the pace of interest rate hikes, with dot plots showing that two-thirds of officials expect three rate hikes in 2022 and six-tenths expect three more in 2023. In addition, the Fed policy statement has abandoned the "temporary" wording of inflation.
Following the Fed's decision, U.S. federal funds rate futures are now pricing a 90% probability of a Fed rate hike in April and a 50% chance of a rate hike in March next year.
CICC: The Fed has shown its determination to "prevent inflation."
The Fed announced that it would accelerate its taper cuts, in line with market expectations. The monetary policy statement removes the wording that inflation is "temporary", and the forecast for inflation is significantly raised in economic forecasts. The number of rate hikes expected by the dot plot in 2022 increased from 1 to 3, exceeding market expectations. In our view, these changes show that the Fed has reached a preliminary consensus on "anti-inflation", no longer has a fluke mentality about inflation, and the labor market is not the main contradiction at present compared to inflation. However, the Fed's monetary policy is also flexible, and the "turning eagle" at this stage cannot be regarded as a real tightening policy.
CITIC Securities: The Fed is expected to raise interest rates for the first time in June next year
CITIC Securities commented on the December Fed interest rate meeting pointed out that the December interest rate meeting, the Fed announced the acceleration of Tape, inflation "temporary" expression was officially deleted, dot plot shows that 12 members believe that in 2022 at least 3 times interest rate hikes, economic forecasts continue to reduce economic growth this year, while significantly increasing the level of inflation. We expect the Fed to complete the Tape in March next year, the first rate hike in June, the current benchmark to judge the 2th rate hike during the year, the timing of the 2nd rate hike and the possibility of a 3rd rate hike depending on the US inflation and employment situation in the second half of next year and Powell's speech communication. In the short term, the 10-year US Treasury yield may fluctuate upwards, and the 10-year Chinese Treasury yield may be easy to go up and down.
Sina Finance