Strategist: High real interest rates still provide justification for the Federal Reserve to cut rates quickly.

date
29/01/2026
Scott Helfstein, director of investment strategy at Global X, said in a report that real interest rates may still be too high, which could lead to the Federal Reserve cutting rates again soon. The investment strategy director stated, "This leads us to believe that the Fed's stance may still be more accommodative than the market expects, and may cut rates again in the first quarter." Helfstein also mentioned that the market may be driven by fundamentals and, so far, the performance of earnings reports in the current season has met the market's high expectations, with many companies reaffirming their earnings forecasts. On Wednesday, as expected, the Federal Reserve kept rates unchanged, pausing its actions after three consecutive rate cuts.