CICC: The Fed's rate hike this time may not necessarily be a bad thing.

In the early hours of September 17, Beijing time, the Federal Reserve announced a 25 basis point increase in the target range for the federal funds rate, raising the benchmark rate to 3.75%4.00%. This was the Fed's first rate hike since July 2023. A research report by Liu Gang, Xiang Xinli, and others at CICC argues that a Fed rate hike this time may not necessarily be a bad thing, while no hike may not necessarily be a good thing.