CITIC Securities: Still expects the Fed to raise rates one more time this year

CITIC Securities research report states that the U.S. September CPI exceeded expectations, with the core month-over-month reading again running hot, a relatively broad range of items showing price increases, and the inflation rate failing to "fall back toward target quickly enough." CITIC Securities still expects the Federal Reserve to raise rates once more within the year, that is, holding steady in October before raising rates by another 25bps in December. In an environment of persistently high oil prices and lingering inflation stickiness, U.S. financial conditions are unlikely to ease meaningfully, dollar liquidity is expected to remain relatively tight, U.S. Treasury yields do not yet have clear room to decline, gold sentiment remains relatively fragile, and the resilience of fundamentals is more important than the odds from liquidity.