HANG SENG BANK: The Federal Reserve's attitude towards interest rate cuts remains cautious, and the market will temporarily maintain a wait-and-see approach
HANG SENG BANK's Chief Investment Officer for Wealth Management, Liang Junfei, stated that the Federal Reserve has decided to maintain interest rates unchanged. Federal Reserve Chairman Jerome Powell mentioned that tariffs may temporarily push up inflation, but the current performance of the U.S. economy remains quite robust, and action will only be taken when the labor market shows signs of slowing down. HANG SENG BANK believes that the Federal Reserve's attitude towards when to cut interest rates remains cautious, leaning towards waiting for economic data such as consumption and employment to actually weaken before taking action, which has cooled market expectations for interest rate cuts. Liang Junfei noted that after the monetary policy meeting, the U.S. dollar, stock market, and bond market showed little change, and the investment market will temporarily remain on the sidelines until there is substantial progress in Trump's reciprocal tariffs and trade negotiations, which may provide a clearer direction. The most important future investment strategy is to maintain a balance between stocks and bonds, diversifying regional and sector risks. After a significant drop in global stock markets in early April, many markets have rebounded to levels prior to the introduction of reciprocal tariffs, making it a good time to review investment portfolio allocations. The uncertainty surrounding Trump's policies remains high, and the impact on the economy is difficult to assess. Adding short- to medium-term high-rated bonds, as well as safe-haven assets like gold and yen, can effectively diversify risks
According to the Zhitong Finance APP, Liang Junfei, Chief Investment Officer of Wealth Management at HANG SENG BANK, stated that the Federal Reserve has decided to maintain interest rates unchanged. Federal Reserve Chairman Jerome Powell indicated that tariffs may temporarily push up inflation, but the current performance of the U.S. economy remains quite robust, and action will only be taken when the labor market shows signs of slowing down. HANG SENG BANK believes that the Federal Reserve's attitude towards when to cut interest rates remains cautious, leaning towards waiting for actual weakening in economic data such as consumption and employment before taking action, which has cooled market expectations for interest rate cuts.
Liang Junfei mentioned that after the interest rate meeting, the U.S. dollar, stock market, and bond market showed little change, and the investment market will temporarily remain on the sidelines until there is substantial progress in Trump's reciprocal tariffs and trade negotiations, which may provide a clearer direction. The most important future investment strategy is to maintain a balance between stocks and bonds, diversifying regional and sector risks. After a significant drop in global stock markets in early April, many markets have rebounded to levels prior to the introduction of reciprocal tariffs, making it a better time to review investment portfolio allocations. The uncertainty surrounding Trump's policies remains high, and the impact on the economy is difficult to assess. Adding short- to medium-term high-rated bonds, as well as safe-haven assets like gold and yen, can effectively diversify risks
