The financial community is closely following the upcoming Fed's monetary policy meeting in July. Although there has been ongoing calls for interest rate cuts recently, Huatai Securities' latest research report points out that, given the strong performance of the labor market and potential inflationary pressures, the Fed may choose to maintain the current interest rate levels this time.

The report analysis states that despite political pressure and some Fed members supporting a rate cut, current economic indicators do not support an immediate easing policy. However, Huatai Securities predicts that if signs of weakness appear in the job market in the coming months, the Fed may take preemptive rate cut measures in the fourth quarter of this year, potentially involving two rate cut actions.

This judgment highlights the delicate balance the Fed must maintain between ensuring economic stability and addressing potential risks. Market participants need to closely follow the economic data in the coming months, particularly employment reports and inflation indicators, as these will be key factors influencing the Fed's subsequent policy decisions.

As global economic uncertainty increases, every move by the Fed will have a profound impact on the financial markets. Investors and policymakers will closely follow the results of this week's meeting, as well as the comments made by the Fed chairman at the press conference, in search of clues regarding the future direction of monetary policy.