Analysis: The Federal Reserve may cut interest rates by an additional 150 basis points next year.
According to Odaily Planet Daily, Joachim Klement, an investment strategist at Panmure Liberum, the UK's largest independent investment bank, stated that the Federal Reserve's recent oscillation between "dovish" and "hawkish" stances has left investors uncertain about the prospect of aggressive interest rate cuts in the US next year. However, the central bank still faces political pressure to rapidly ease policy. Therefore, if historical experience holds true, investors may experience a brief period of economic euphoria in 2026. If the US economy does slow significantly, substantial interest rate cuts are likely to be the right remedy and should not lead to excessive inflation. Analysts believe the Fed may cut interest rates by an additional 150 basis points next year. (Jinshi)
