Standard Chartered: It is expected that the Federal Reserve will implement interest rate cuts to buffer the impact on the bond market and support economic rise.

GateUser-6433627c · 2025-05-22T09:27:49+00:00

Standard Chartered Bank believes that despite the increase in the U.S. fiscal deficit, the Federal Reserve may cut interest rates to mitigate the impact on the bond market and support economic growth. They expect the yield on U.S. ten-year Treasury bonds to decline to 4%-4.25%. They remain optimistic about U.S. stocks, believing that corporate investment and profit expectations will continue to support the market; and they reaffirm the value of gold in hedging against inflation and recession risks, maintaining a target price of $3500.

GateUser-6433627c

2025-05-22 09:27:49

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On 22 May, Foo Ken Yap, senior investment strategist at Standard Chartered Bank, said that despite heightened concerns about the US fiscal deficit, the Federal Reserve is expected to implement interest rate cuts to cushion bond market shocks and support economic growth. The bank forecasts that the US 10-year Treasury yield will fall to 4%-4.25% in 12 months from the current level of about 4.59%, while remaining optimistic about US equities, believing that strong corporate investment and resilient earnings expectations will continue to support the market. Standard Chartered also reaffirmed gold’s value as a hedge against inflation and recession risks, maintaining a price target of $3,500. (Golden Ten)

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