Analyst: The Federal Reserve Will Prioritize Protecting the Labor Market

Jinse Finance reported that Harvey Bradley, Co-Head of Global Rates at Insight Investment Federal Reserve, stated in a report that a rate-cutting environment could be good news for those investing in U.S. bonds through globally diversified fixed income portfolios. Although tariffs may still lead to higher inflation, the Federal Reserve is expected to cut rates on Wednesday. Given the relatively stubborn inflation in the U.S., the market will closely watch the Fed's latest "dot plot" forecast for future rate cuts after September. In our view, although inflation may complicate the outcome, we believe the Federal Reserve will be prepared to "look past" above-target inflation in order to protect the labor market.