Bullish
OCBC Expects Fed Pause Until End of 2026 With Two Cuts in 2027
20:29
OCBC analyst Alvin Liew projects the Fed will hold rates steady through 2026, implementing two 25bp cuts in 2027 to reach 3.25%, citing balanced but upward-tilting risks.
Woofun AI reports that Overseas-Chinese Banking Corporation analyst Alvin Liew maintains a base case for the Federal Reserve to extend its pause until the end of 2026. The bank anticipates two rate reductions of 25 basis points each in 2027, targeting a final Fed funds rate of approximately 3.25% by year-end. Liew notes that while June and July CPI data have balanced FOMC outlook risks, geopolitical and energy uncertainties create a slight upward tilt, prompting continued vigilance regarding potential policy tightening.
WOOFUN AI
Impact Assessment · Quick Read
This forecast suggests a prolonged period of monetary stability through 2026, which could support yield-sensitive assets and reduce near-term volatility in risk markets. The expectation of cuts in 2027 implies a shift toward easing, potentially boosting equity valuations if inflation remains contained. However, the noted upward risk from geopolitical factors introduces uncertainty that may keep markets cautious about premature dovish positioning.
Generated by WOOFUN AI · For reference only, not investment advice
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