Allianz Investment: Expects the Federal Reserve to maintain the benchmark interest rate in June and possibly cut rates twice throughout the year

Allianz Investment's Chief Investment Officer for Public Markets, Michael Krautzberger, expects the Federal Reserve to maintain the benchmark interest rate at this week's meeting, with a target range of 4.25% to 4.5%. The market anticipates that the Federal Reserve may cut rates twice this year, provided that tariffs exert pressure on domestic demand. Although the stock market has recovered from its initial decline, global economic growth still faces downside risks, and the market may be overly optimistic. The current macro and policy environment is conducive to adopting a steepening yield curve strategy