--- title: "Fidelity: The Federal Reserve may not start the interest rate hike cycle until December, and AI remains a long-term growth theme" type: "News" locale: "en" url: "https://longbridge.com/en/news/294327327.md" description: "Fidelity believes that the Federal Reserve may delay raising interest rates until December, leading to increased policy uncertainty and volatility. Although the situation between the U.S. and Iran and concerns over AI have heightened market sentiment volatility, corporate earnings remain robust, and AI continues to be a long-term growth theme. Strategically, they maintain an overweight in equities, favoring Japan and emerging markets, while remaining cautious about the high valuations of U.S. tech stocks; in terms of bonds, they maintain a neutral stance and recommend pursuing long-term returns through diversified asset allocation" datetime: "2026-07-30T08:33:57.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/294327327.md) - [en](https://longbridge.com/en/news/294327327.md) - [zh-HK](https://longbridge.com/zh-HK/news/294327327.md) --- # Fidelity: The Federal Reserve may not start the interest rate hike cycle until December, and AI remains a long-term growth theme According to the Zhitong Finance APP, the Federal Reserve has kept interest rates unchanged. Fidelity believes that **the Federal Reserve is more likely to start the interest rate hike cycle in December, provided that inflation and labor market data continue to be strong.** However, the possibility of a rate hike in September has not been completely eliminated, as economic data and geopolitical developments in the next two months may still raise inflation risks again. Fidelity further stated that more importantly, this decision highlights the policy characteristics of the Warsh (Kevin Warsh) era, meaning that market expectations for the policy path may be frequently adjusted, and interest rates and asset prices are more likely to fluctuate with data and officials' statements, resulting in a high degree of uncertainty and volatility in policy and markets. Although the recent tensions between the U.S. and Iran have escalated, coupled with investors' heightened concerns about AI-related capital expenditures, potential supply excess, and rising long-term bond yields, which have increased market volatility. However, Fidelity believes that these factors currently mainly affect market sentiment and valuations, and have not changed the fundamental trends of the global economy and corporate earnings. Corporate earnings remain robust, and fiscal policy and AI investments continue to support economic activity; **AI remains an important long-term growth theme, and global economic expansion has not been interrupted, which is still favorable for the performance of risk assets in the medium to long term.** In terms of investment strategy, corporate earnings growth still has potential. Fidelity maintains an overweight position in stocks and is relatively optimistic about Japan and emerging markets, where valuations and earnings momentum are more favorable; however, U.S. large-cap tech stocks are overvalued, and attention should still be paid to market concentration and AI investment returns. On the bond side, inflation, fiscal expansion, and policy uncertainty may limit the downward space for long-term yields, thus maintaining a neutral stance on government bonds; at the same time, given that credit spreads have narrowed significantly, Fidelity remains cautious on credit bonds and suggests that investors can adjust their global diversified asset strategies dynamically to cope with the current environment of increased volatility, focusing on high-quality companies, and combining global dividend strategies with quality bond allocations to pursue stable long-term returns ### Related Stocks - [EMXC.US](https://longbridge.com/en/quote/EMXC.US.md) - [AVES.US](https://longbridge.com/en/quote/AVES.US.md) - [ARTY.US](https://longbridge.com/en/quote/ARTY.US.md) - [IXN.US](https://longbridge.com/en/quote/IXN.US.md) - [AVEM.US](https://longbridge.com/en/quote/AVEM.US.md) - [SPEM.US](https://longbridge.com/en/quote/SPEM.US.md) - [XDAT.US](https://longbridge.com/en/quote/XDAT.US.md) - [AIQ.US](https://longbridge.com/en/quote/AIQ.US.md) - [FEMX.AU](https://longbridge.com/en/quote/FEMX.AU.md) ## Related News & Research - [EMERGING MARKETS-Stocks surge as Asian chipmakers spark relief rally; FX mixed](https://longbridge.com/en/news/294490137.md) - [Active AI ETFs surge as $765B spending wave builds](https://longbridge.com/en/news/288923126.md) - [AIQ Secures New £2m Convertible Funding and Aligns Existing Notes to Support AI Infrastructure Push](https://longbridge.com/en/news/291763933.md) - [AIQ vs. BOTZ: Which AI ETF Could Deliver Bigger Returns in 2026?](https://longbridge.com/en/news/291727392.md) - [AI Models Are Built on a Flawed Foundation, Michael Burry Says](https://longbridge.com/en/news/292339497.md)