Fidelity International: Expects the Federal Reserve still has 100 basis points of rate cut space this year, favorable for fixed income assets

Fidelity International fund manager Rick Patel stated that the U.S. labor market is weak, and he expects the Federal Reserve to have 100 basis points of room for rate cuts within the year, which will benefit fixed-income assets. He pointed out that overall inflation in the U.S. is currently above the Federal Reserve's target, and consumers are facing negative real income, which may put downward pressure on private consumption. He believes that U.S. Treasury bonds with maturities of 5 to 10 years are the most attractive, while corporate bonds have lower appeal. U.S. stock valuations are high, and fixed-income products can serve as a diversification tool