The Federal Reserve maintains the benchmark interest rate, Morgan Asset Management: continues to advocate for diversified investment in international stocks

According to the Zhitong Finance APP, Xu Changtai, Chief Market Strategist for Asia Pacific at JP Morgan Asset Management, stated that after the Federal Reserve's meeting, maintaining its policy interest rate between 4.25% and 4.5% is in line with expectations. JP Morgan Asset Management noted that this meeting will not change the firm's asset allocation strategy. JP Morgan Asset Management continues to advocate for diversified investments in international equities and creates income through various channels, including corporate credit, Asian fixed income, and option overlay strategies to manage volatility. Alternative assets such as infrastructure and transportation can also provide investors with stable income sources. The Federal Reserve's assessment indicates that the economic situation is good, consistent with current economic data. However, unexpected consequences of trade policy, fiscal policy, and the Trump administration's policies are exacerbating market volatility in the second half of this year. JP Morgan Asset Management stated that the statement released by the Federal Reserve is constructive, emphasizing the robust pace of economic expansion and a healthy labor market. The statement also highlights that uncertainty surrounding the economic outlook is decreasing, which may be a response to ongoing trade negotiations between the U.S. and its trading partners. Federal Reserve Chairman Jerome Powell pointed out that the current tensions in the Middle East have not significantly affected the Federal Reserve's decision-making process, as energy shocks typically only have temporary effects. JP Morgan Asset Management indicated that members of the Federal Open Market Committee (FOMC) have updated their forecasts, lowering growth expectations and raising inflation expectations to reflect the impact of the Trump administration's tariff increases and other policies. Notably, the rise in U.S. inflation expectations over the past six months has been greater than the rise in the unemployment rate, suggesting that FOMC members may expect inflation to respond first, followed by changes in the unemployment rate. JP Morgan Asset Management mentioned that the median forecast still expects two rate cuts this year, each by 25 basis points. However, views within the FOMC are becoming increasingly polarized, with 7 out of 19 members predicting that interest rates will remain unchanged this year, compared to only 4 in March. The number of rate cuts expected in 2026 and 2027 has also been reduced from two to one each. This may be influenced by President Trump's pressure on Powell to cut rates. The FOMC must demonstrate independence and ensure that rate cuts are implemented only after significant economic growth slows; if presidential pressure increases, this may lead to greater resistance to rate cuts