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Chuangcai Group Chuangcai Group

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Specializing in the research, development, production and sales of galvanized sheets, color-coated sheets, film-coated sheets and metal decorative materials

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2026.02.03


Chuangcai’s Interpretation: The Fed’s Future Policy Direction Still Holds Uncertainty—A Brief Analysis of “Interest Rate Cuts, Balance Sheet Reduction, and a Stable U.S. Dollar”

[Key Takeaway] Previously, U.S. President Trump indicated that he was not concerned about the depreciation of the U.S. dollar, triggering noticeable weakening in U.S. stocks, bonds, and the currency itself. Market expectations for a weaker dollar intensified, causing gold prices to rise rapidly. Subsequently, Bessen reiterated the U.S. dollar’s strong-strategy stance, aiming to stabilize market expectations. At the same time, he announced the nomination for the next Fed chair, prompting the market briefly to enter “Wash” trading—characterized by a policy orientation favoring “rate cuts plus balance-sheet reduction.” As a result, the U.S. dollar index rebounded from its bottom, while gold prices experienced a sharp decline. We believe that, given the current U.S. economic situation—which carries the risk of stagflation—and the previous sustained weakening of the U.S. dollar, this nomination could, in the short term, improve market expectations regarding the dollar’s creditworthiness. Specifically, by introducing the concept of balance-sheet reduction in the near term, the market may engage in expectation-driven trading aimed at stabilizing the dollar and dollar-denominated assets on a temporary basis. Going forward, it will be crucial to closely monitor whether the U.S. dollar index can stabilize under the new policy guidance from the Federal Reserve, whether market preference for dollar-denominated assets increases to some extent, and whether this can help bolster expectations of a soft landing for the U.S. economy. Overall, the global trend toward de-dollarization remains unchanged. The declining credibility of the U.S. dollar and the fiscal sustainability challenges posed by U.S. Treasury bonds persist. We expect that during Trump’s term, the U.S. dollar index will continue to remain relatively low in the medium to long term. Looking ahead, we anticipate that the Fed will keep the door open for further rate cuts. Under Trump’s weak-dollar strategy, the overall upward trend in gold prices is likely to remain intact for now. In the future, balance-sheet reduction may serve as a non-sustained tactical measure, and the actual probability of implementing such a reduction is relatively low. At the same time, we should also pay close attention to the final nomination of the next Fed chair. Should there be any changes in this nomination, market trading dynamics and asset prices could undergo significant shifts.

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CHUANG CAI

As strong as steel, as agile as intelligent manufacturing

Welcome to Chuangcai, a trusted choice for global sales

New era, new challenges, new opportunities. The global steel market is waiting for us to make great achievements. With the goal of building a grand brand, we adhere to steady operation and long-term development. At the same time, relying on strong human resources, rigorous management and business philosophy, through the accumulation of our own experience and the unremitting pursuit and improvement of the future, we constantly carry out self-innovation, technological innovation, management and business philosophy innovation, follow the trend of the development of the current international market, adhere to the business philosophy of people-oriented, quality-oriented enterprise, honesty and trustworthiness, and continuous innovation, and build the company into an internationally advanced multinational enterprise.

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Chuangcai Group Limited

2012 Found In

Chuangcai Group Limited was established in 2012 as an integrated company specializing in design, research and development, production, and sales. The company primarily engages in the import and export of products such as color-coated steel sheets, galvanized steel sheets, and corrugated steel sheets. Since its inception, the company has adhered to the principles of putting people first and prioritizing customer satisfaction, consistently staying at the forefront of the industry. The company primarily exports to over 30 countries and regions worldwide, including South Korea, Southeast Asia, the Middle East, Africa, South America, and Europe.

Why Choose Us

High-quality metal sheet solutions

One-stop supply chain

Improve efficiency

Integrating processing, warehousing, logistics and export packaging, realizing rapid delivery from raw materials to finished products, and completely cutting off the delay pain points caused by the fragmentation of traditional links.

Comprehensive Certification

Quality Controllable

Products have passed international certifications such as SGS/BV/CIQ/ISO9001, ensuring that customers consistently obtain consistent performance in various application scenarios. Chuangcai Group ensures the stability of finished products for export orders and high customer satisfaction through a strict quality control system.