Pulles: The Fed may cut interest rates in September, asset allocation will be more inclined towards high-yield bonds

Tim Murray, Capital Market Strategist at T. Rowe Price's Multi-Asset Division, commented on the Federal Reserve's interest rate decision. The market expects the Fed to start a rate-cutting cycle in September, but the expectations may be too optimistic. Investors should pay attention to the possibility of CPI data coming in lower than expected. Chairman Powell mentioned weakness in the labor market, but the Fed will not accelerate the pace of rate cuts. The September meeting may see a rate cut, but the future rate-cutting situation remains uncertain. Therefore, in terms of asset allocation, a preference is towards high-yield bonds