The Federal Reserve postpones the resumption of interest rate cuts, wary of the high volatility of overseas assets.

date
09/05/2025
In the eyes of brokers, the strong employment data in the United States and conflicting economic signals such as weak consumer confidence have made the job of decision-makers at the Federal Reserve particularly difficult. The risk of stagnation in the US economy is one of the important reasons for the Fed to stay put. After the Fed's interest rate decision in May, some institutions have postponed their expectations for the Fed to restart interest rate cuts from June to July, adopting a wait-and-see approach as the current policy stance of the Fed. Looking ahead, the only certainty is uncertainty until the international trade situation and the US economic situation become clear. Guosheng Securities' chief economist Xiong Yuan reminds that sensitivity to news related to the international trade situation and various economic data in the United States in overseas markets will increase, warning of the possibility of significant amplification of overseas asset price fluctuations.