On December 20, the central parity rate of the Renminbi against the US Dollar reported 7.1901, an increase of 10 basis points.

Barclays: The Federal Reserve may cut interest rates twice in 2025, each by 25 basis points.

Barclays expects the Federal Reserve to cut interest rates twice in 2025, in March and June, each by 25 basis points. It is anticipated that in the second half of 2025, core Personal Consumption Expenditures (PCE) inflation levels will rise again, therefore Barclays believes that around mid-2026, the Federal Reserve will continue to start rate cuts, expecting two cuts that year, each by 25 basis points, adjusting the target interest rate Range to a moderately tight 3.25% to 3.50%.

DWS: Based on policy uncertainty, it is expected that the Federal Reserve will cut interest rates again in March next year.

The chief US economist at DWS, Christian Scherrmann, stated that the Federal Reserve's last monetary policy meeting this year cut the policy rate by 25 basis points, in line with market expectations, setting a new target Range of 4.25% to 4.5%. The latest median economic forecasts reflect that there may only be two rate cuts in 2025, significantly lower than the earlier expectation of four, which aligns with DWS's recent predictions. Federal Reserve Chairman Powell confessed at the press conference that there was considerable disagreement over this rate cut decision, indicating inflation is on a 'sideways' trajectory. This comment may suggest that if the anti-inflation process stagnates, the Federal Reserve may choose to take a wait-and-see approach. Powell mentioned that political uncertainty has weakened some policymakers' confidence in the continued moderation of inflation. DWS expects that due to policy uncertainty, the Federal Reserve may choose to skip the January meeting next year and will not cut rates again until March.