Lates News

Matthias Schber, head of the diversified asset team at Allspring Global Investments: The job market is stabilizing, inflation continues to rise, prompting the Federal Reserve to pause its previous rate cuts to support economic growth in the United States. The current interest rate level seems to be approaching neutral rate, which can both boost employment and curb inflation. However, the investment and capital spending boom triggered by artificial intelligence, as well as the surge in commodity prices including industrial metals, may make this year's inflation trajectory more difficult to reverse. The market has gradually digested one of the expected rate cuts at the end of last year. The focus of the market will still be on the appointment of the new Federal Reserve Chairman, with intense competition currently, but it is widely expected that Powell's successor will be more dovish. The pressure from the government on the Federal Reserve to cut rates is expected to be a major theme this year.