Investors brace for volatility as the Fed nears the end of its tightening cycle | Ausbiz
Isaac Poole from Oreana Financial Services discusses the upcoming Federal Reserve (Fed) rate change. He anticipates the Fed will likely increase rates by a quarter percent despite the market’s lower CPI inflation trend and the University of Michigan’s consumer sentiment data.
However, Isaac also predicts this may be the Fed’s final rate hike amid a slowing economy, inflation figures decreasing rapidly, and high rates affecting the economy. He forecasts around August or September, the Fed may go easy on the brakes due to nearing recession risks. Additionally, Isaac reviews the Australian economy, stating that the country’s economy possesses resilience seen in the US a few months back, possibly resulting in one or two more rate hikes from the Reserve Bank of Australia. Regarding the global economy, Isaac states China’s economy recovery progress is critical.
Despite anticipating strong upcoming GDP figures, he suggests China’s industrial production and retail sales may not yet reflect the impact of recent rate cuts. He expects a controlled rate cut impact distribution over the next several months by Chinese authorities to protect against a global recession. Finally, Isaac also speaks about the challenges facing emerging markets in the current global slowdown.
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