Post by account_disabled on Dec 13, 2023 5:12:33 GMT
SCB CIO expects the Fed will not cut interest rates this year, keeping them at 5.00-5.25%, increasing the risk of economic recession. After tightening control over lending, investors are advised to increase the proportion of investments in government bonds and investment grade bonds. SCB CIO assesses the Fed to stop raising interest rates and maintain them at the level of 5.00 - 5.25% throughout 2023. The Fed sends a clearer signal. financial sector tensions As a result, the US economy has slowed down due to tighter lending conditions. That will affect economic activity, employment, including inflation.
This causes the risk of an economic recession to increase. SCB CIO advises Phone Number List investors to hedge their risks. By increasing the proportion of investment in US government bonds. and investment grade bonds because they are the assets that best help cope with the risk of economic recession. Dr. Kamphon Adireksombat, Senior Director and the team leader of SCB Chief Investment Office (SCB CIO), Siam Commercial Bank, revealed that from the statement of The Federal Open Market Committee (FOMC) held its meeting in May. There has been an emphasis on the stability and health of the U.S. banking system, which is still strong and starting to improve compared to the beginning of March.
But credit conditions, which are already strict, will become even stricter. After being affected by the closure of many banks and will affect economic activity, employment, including inflation. The FOMC meeting emphasized that it remains committed to bringing inflation back to 2%. Jerome Powell, Chairman of the Federal Reserve (Fed), stated that the slowdown in inflation The disinflation process has begun. But it is still only in the early stage. Bringing inflation (Headline PCE) which is the goal of the Fed. Getting back down to 2% will still take some time. And the Fed's job of managing inflation is not yet finished.
This causes the risk of an economic recession to increase. SCB CIO advises Phone Number List investors to hedge their risks. By increasing the proportion of investment in US government bonds. and investment grade bonds because they are the assets that best help cope with the risk of economic recession. Dr. Kamphon Adireksombat, Senior Director and the team leader of SCB Chief Investment Office (SCB CIO), Siam Commercial Bank, revealed that from the statement of The Federal Open Market Committee (FOMC) held its meeting in May. There has been an emphasis on the stability and health of the U.S. banking system, which is still strong and starting to improve compared to the beginning of March.
But credit conditions, which are already strict, will become even stricter. After being affected by the closure of many banks and will affect economic activity, employment, including inflation. The FOMC meeting emphasized that it remains committed to bringing inflation back to 2%. Jerome Powell, Chairman of the Federal Reserve (Fed), stated that the slowdown in inflation The disinflation process has begun. But it is still only in the early stage. Bringing inflation (Headline PCE) which is the goal of the Fed. Getting back down to 2% will still take some time. And the Fed's job of managing inflation is not yet finished.