Expert Analysis: Fed Likely to Maintain Stable Policy Path, Market Volatility Not Affecting Rate Cut Expectations
Publication Time:2024-08-06 15:52:07
Björn Jesch, the Global Chief Investment Officer at DWS, in his report stated that despite recent market turbulence, the Federal Reserve (Fed) is likely to stick to its anticipated policy course rather than being driven by market panic. Jesch noted that the Fed is unlikely to undertake emergency rate cuts triggered by panic, but instead aims to avoid signaling a significant policy shift to the market. It is expected that the Fed will adopt a more cautious and gradual approach, gradually lowering interest rates by 25 basis points starting from September and continuing into the coming months. Analysts remind that while the possibility of an economic downturn in the US cannot be entirely ruled out, given the overall strength of the economy and the solid balance sheets of the private sector, the impact could still be relatively mild should a recession occur. It is worth noting that DWS does not predict that the current phase is in a bear market, but continues to monitor indicators reflecting systemic risks to better understand market dynamics and potential risks.
Market Volatility
Fed
Rate Cut Expectations
economic recession
Gradual Ease