Analysts see silver lining for fixed income amid US Fed rate cut, but uncertainty over trajectory weighs on investors
Market watchers believe the US dollar could see near-term resilience while the recent gold rally could slow down
Asia’s equities markets fluctuated on Thursday (Sep 18) amid mixed reactions over a much-anticipated US Federal Reserve interest rate cut that was paired with a deeply cautious outlook on future policy.
The Federal Open Market Committee (FOMC) lowered its benchmark rate by 25 basis points (bps) to a target range of 4 to 4.25 per cent – a move that officials said was prompted by a shift in focus towards emerging risks in the US labour market.
However, Fed chairman Jerome Powell was careful to frame the decision as a “risk management” adjustment, pushing back against market hopes that this was the start of a sustained and aggressive easing cycle.
