Singapore Bank: If the Federal Reserve believes that tariffs will not lead to stagflation, there may be only one interest rate cut this year

The Chief Economist of Singapore Bank, Moman Su, stated that if the Federal Reserve believes that tariffs will not lead to stagflation, it is expected to cut interest rates only once this year. The Federal Reserve kept interest rates unchanged and expects two rate cuts in 2025. Despite the increasing uncertainty in the economic outlook, investors are still advised to increase their holdings in stocks, cautiously hold long-term bonds, and be bearish on the US dollar. In the coming months, unless the US economy stagnates, the yield on 10-year US Treasury bonds is unlikely to fall below the range of 4% to 5%