Minsheng Securities: Interest rate cuts won't save the United States.

US President Trump continues to pressure the Federal Reserve to cut interest rates. The market has also increased expectations for a rate cut this year in response to recent disappointing employment data, which is supportive of short-term stock market performance. Chief economist Tao Chuan and the team at Minsheng Securities Research Institute point out that a rate cut now is unlikely to solve the current issues of US government debt and inflation. Firstly, the input inflation caused by the depreciation of the US dollar will impact the effectiveness of a rate cut. Secondly, the high interest rate environment in the past has led to an increase in the amount of US Treasury bonds held by the private sector, and a rate cut may actually harm the wealth of Americans.