Institution: Despite market volatility, the Federal Reserve is unlikely to cut interest rates urgently

ChainCatcher news, DWS Global Chief Investment Officer Björn Jesch stated that despite recent market volatility, the Federal Reserve is likely to continue its expected policy path.

In a report, he mentioned that the Federal Reserve is unlikely to react in a panic-driven manner, and he expects the central bank to try to avoid signaling a significant policy shift, such as a 50 basis point rate cut or an emergency rate cut between two meetings. He anticipates that the Federal Reserve will maintain a gradual easing approach, starting in September, with incremental rate cuts of 25 basis points over the coming months. While the possibility of a recession in the U.S. economy cannot be ruled out, considering the overall strength of the economy and the robust balance sheets of the private sector, even if a recession does occur, it may be mild. DWS does not believe a bear market is imminent but will closely monitor indicators that reflect systemic risks. (Jin Shi)