Standard Chartered: Fed Expected to Cut Rates to Cushion Bond Market Impact and Support Economic Growth
Foo Ken Yap, Senior Investment Strategist at Standard Chartered Bank, stated that despite growing concerns over the U.S. fiscal deficit, the Federal Reserve is expected to implement rate cuts to cushion the bond market impact and support economic growth. The bank forecasts that the yield on the U.S. 10-year Treasury will decrease from the current approximately 4.59% to 4%-4.25% within 12 months. They remain optimistic about U.S. stocks, believing that strong corporate investment and resilient earnings expectations will continue to support the market. Standard Chartered also reiterated the value of gold as a hedge against inflation and recession risks, maintaining a target price of $3,500. (Jin10)
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