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Hang Seng CMS Bloomberg US Treasury 7-10 Year Index ETF: Annual Financial Report 2025
Markets on Edge: Gold, US Dollar, and Bonds Brace for Fed's Rate Decision
JPMorgan: If rate cuts are made under political pressure, risks to U.S. stocks, bonds, and the dollar may increase.
David Kelly, Chief Global Strategist at JPMorgan Asset Management, warned on Monday that if the market perceives interest rate cuts as being driven by political pressure rather than aligning with the Federal Reserve's own economic forecasts, it would pose greater risks to US stocks, bonds, and the dollar. In his report, Kelly noted that markets are currently leaning towards frothiness, and abrupt rate cuts could further weaken demand instead of stimulating it, ultimately negatively impacting the stock market, bond market, and the dollar. Although market expectations align with the Fed’s optimistic view on rate cuts, based on officials’ quarterly projections, economic growth and employment have only been slightly downgraded, while inflation remains above the 2% target until 2027, making it difficult to justify such measures.
Interim Financial Report 2025