Guotai Haitong: Expect the Fed to pause rate hikes in the short term, with a high probability of resuming hikes in December.

Guotai Haitong released a research report stating that it expects the Federal Reserve, after pausing rate hikes in the short term, will most likely continue raising rates in December. The reasons the Fed paused rate hikes in October are: first, the Fed believes that short-term financial conditions have already tightened; second, the Fed faces a balance between the economy and inflation, and recent employment data has declined somewhat; third, energy prices are a fast-moving variable, and the Fed needs to remain flexible. It is expected that in December there is still a high probability of a 25BP rate hike.