Strategists at Morgan Stanley say the yen could appreciate nearly 10 per cent against the dollar over the next few months if the Federal Reserve cuts interest rates in a row amid growing signs of a US slowdown. The dollar/yen is currently out of fair value, and if that relationship returns, the US-Japan exchange rate will fall in Quarter 1 2026 as lower Treasury yields could push down fair value, strategists including Matthew Hohenbach write. They note that "along with this...
Vincenzo Vida, global chief investment officer at WS Group, said one of the main drivers of gold's rally was expectations of further interest rate cuts by the Federal Reserve, which made it more attractive relative to fixed income assets. Gold prices recently broke through the $4,000-an-ounce mark for the first time, up more than 50% this year. Silver also rallied sharply, outperforming even gold this year. But if things change, such as inflation not slowing as expected, gold prices could come u...
In an interview with CNBC, BitMine board chairperson Tom Lee said that if the Federal Reserve cuts interest rates, the greatest benefits will be: Nasdaq 100 Index (Mag7 + artificial intelligence) Bitcoin and Ethereum could see a significant increase in the next three months. Small-cap stocks and the financial sector.
Mr. Trump is trying to restore policy dominance by ousting Fed officials, with several regional Fed presidents likely to be replaced next year. Political erosion of the Fed's independence could drive up inflation, undermine credibility and even trigger a surge in long-term interest rates. Click to view
Seema Shah, chief global strategist at Principal Asset Management, said that while the case for easing has strengthened, there is currently little economic justification to implement a 50 basis point rate cut equivalent to an emergency level. If the Fed chooses to do so, markets could interpret it as politically driven rather than data-based decisions. This could push up inflation expectations and term premiums, sending long-term yields higher, undermining conditions that have been supporting ri...
Financial website Fxstreet analysis said that the Federal Reserve is widely expected to maintain its policy setting unchanged for the fourth consecutive meeting. Currently, the probability that the Federal Reserve will cut interest rates for the first time of the year in September is about 70%. Therefore, the revisions in the dot plot chart and the comments of US Powell could provide key clues to the timing and frequency of rate cuts. If the revised economic forecast shows that policymakers stil...
Federal Reserve Chairperson Jerome Powell said the Fed would do better on inflation if it remained independent. The Fed needs to maintain a high degree of transparency, which requires the Fed to remain independent. There has been a strong response to inflation, which has helped anchor inflation expectations. Mr. Powell said the Fed does not consider the interests of any political party when making decisions. Politics could be a distraction.
Gold Ten Futures September 10 news, CITIC Jiantou futures analyst Zhang Weixin said that if the Federal Reserve chooses to cut interest rates by 25BP in September, it is more considered to be a preventive interest rate cut, which is good for copper prices. If the Federal Reserve cuts interest rates by 50BP in September, it may trigger a wave of selling of risk assets. If the Federal Reserve does not cut interest rates in September, on the one hand, the expected fall will bring selling pressure, ...