Mitsubishi UFJ: The Federal Reserve Has Not Entered Rate-Cut Sprint Mode

According to ChainCatcher, citing Golden Ten Data, George Goncalves, Head of US Macro Strategy at Mitsubishi UFJ, stated that this Federal Reserve decision is the most dovish stance and has added one more rate cut in the dot plot forecast. He pointed out that the Fed has not entered a rate cut sprint mode, but rather has restarted the rate cut process due to the labor market underperforming expectations. This is also the reason why risk assets have reacted mildly. The Fed may cut rates by 25 basis points each in October and December, and a 50 basis point rate cut may not necessarily be favorable for credit.