Agency: Despite market volatility, the Fed is unlikely to cut interest rates urgently

Björn Jesch, the global chief investment officer of DWS, said that despite recent market volatility, the Fed may continue its expected policy path.In a report, he stated that the Fed is unlikely to have a panic-driven reaction and he expects the central bank to try to avoid sending signals of significant policy changes, such as a 50 basis point rate cut or an emergency rate cut between two meetings. He expects the Fed to stick to a gradual easing approach, starting in September and gradually cutting interest rates by 25 basis points over the next few months. Although there is a possibility of a recession in the US economy, considering the overall strength of the economy and the healthy balance sheets of the private sector, even if a recession does occur, it may be mild. DWS does not believe that a bear market is imminent, but will closely monitor indicators that reflect systemic risks. (Jin Shi)