Fed cuts may send $1 trillion FX ‘avalanche’ to China, Jen says

The possibility of the Chinese yuan increasing in value is looking even more likely now that Federal Reserve Chairman Jerome Powell has signaled the US is ready to lower interest rates. However, the yuan's rise won't necessarily be immediate. It might happen later, when the US dollar weakens further and the US achieves a "soft landing" - that's when inflation slows down without causing a recession.