[Expectations of the Fed restarting rate cuts are postponed
Beware of high volatility risks of overseas assets] In the view of securities dealers, the contradictory economic signals such as strong US employment data and weak consumer confidence have made the work of Fed policymakers particularly difficult. The risk of stagflation in the US economy may be an important reason for the Fed to remain on the sidelines. After the Fed’s May interest rate decision was announced, some institutions have postponed the Fed’s expectations for restarting rate cuts from June to July, and wait-and-see has become the main tone of the Fed’s current policy. "Looking back, before the international trade situation and the US economic situation become clear, the only certainty is uncertainty." Xiong Yuan, chief economist of Guosheng Securities, reminded that the sensitivity of overseas markets to news related to the international trade situation and various US economic data will increase, and it is necessary to be vigilant about the possibility that fluctuations in overseas asset prices may be significantly amplified.
