Standard Chartered: Market Expectations for the Federal Reserve Are Too Hawkish, Rates Expected to Remain Unchanged This Year

The market's expectations of the Federal Reserve are too hawkish. We believe the Federal Reserve will keep interest rates unchanged for the remainder of this year and will enact a real rate cut in the second quarter of next year. According to the mid-year market outlook report released by Standard Chartered, the U.S. economy is performing better than expected; meanwhile, the interim agreement reached between the U.S. and Iran may lead to overall inflation peaking in the second quarter. The current situation is favorable for interest rates in emerging markets such as India. At present, we are more inclined to invest through equities, but I believe that for India, the future environment will improve and the situation will gradually stabilize. (Bloomberg)