Daiwa: The Fed will not take preemptive action

Morgan Stanley's team of analysts, led by Chief US Economist Michael Gapen, wrote in a research report, "Given the Federal Reserve's expectation that inflation will remain strong and that tariff impacts may generate sustained inflation effects, the Federal Reserve is unlikely to take preemptive action." While President Trump has partially eased tariffs since the "Liberation Day" on April 2, stabilizing the bond and stock markets to some extent, investors say overall anxiety about the future developments in the market has not dissipated. Gregory Peters, Co-Chief Investment Officer at PGIM Fixed Income, which manages $837 billion in assets, said, "We advise investors to continue to be cautious and reduce risk."