strategist: Federal Reserve decisions and objections confirm delicately balanced market expectations prior to the meeting

In a report dated 30 July, Seema Shah, the chief global strategist for ISIS, stated that, in the context of the three commissioners ' negative vote, the Fed ' s decision to maintain interest rates unchanged was clearly more of an internal dispute than a consensus decision, which confirmed the delicate market expectations prior to the Conference. The statements provided little new information, but the objections sent a clear message that the Fed was not convinced that the battle against inflation had been won. While the current rate reduction is not possible, investors cannot rule out the possibility of a further increase by the end of the year. The basic assumption for the management of the funds remains that, as basic inflationary pressures ease, the Fed will remain in place by the end of 2026, “but confidence in this view is low”. Kim Xian