The Federal Reserve issued a statement from the October FOMC meeting in the early morning of October 29, Beijing time, announcing that interest rates will remain unchanged. In response, Open Source Securities said that the Federal Reserve will remain cautious and raise interest rates again in 2026. Open Source Securities believes that after the interest rate hike in September, the pressure faced by the Federal Reserve eased slightly, and the urgency of continuing to raise interest rates declined. Moreover, the FOMC is approaching the mid-term elections in October, and interest rate hikes at this time may put the Federal Reserve in a political dispute. The Federal Reserve may be cautious about subsequent policies to avoid a rise in inflation that exceeds expectations and that people's inflation expectations get out of control. Under the benchmark situation, the Federal Reserve may raise interest rates again in December 2026. The 2027 rate hike is highly dependent on changes in the US and Iran situation and the transmission effect of oil prices on US inflation.

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