Deutsche Bank: Expects the Fed to cut rates by 25 basis points this week; Powell may emphasize that the threshold for rate cuts next year is very high.

The US dollar weakened today as markets awaited the Federal Reserve's policy decision this week, with widespread expectations of another interest rate cut. Deutsche Bank analysts stated in a report that the Fed may announce its third and final 25-basis-point rate cut of 2025 on Wednesday, and the decision is not expected to be unanimously approved. Analysts indicated that Chairman Powell's press conference and accompanying statement will be crucial. "We expect Powell to emphasize that the threshold for further rate cuts in early 2026 is high, signaling a short-term pause in rate cuts." (Jinshi)