US / Monetary, Rates

Weekly: Insurance cuts for what?

Taimur Baig, Duncan Tan / July 12, 2019
What are the risks of forthcoming rate cuts by the US Federal Reserve? Less room to cut when a real shock hits; asset price melt-up; policy credibility.
Key summary points
  • The intersection of high debt and high valuation will widen
  • Expect increasing episodes of market tantrum as the Fed put is played out
  • Fed cuts won’t weaken the USD considerably
  • Taking cue from the Fed, major central banks around the world will ease too
  • Weak data out of China and Singapore show mounting downside to Asia’s outlook

Weekly: Insurance cuts for what?

Photo credit: AFP Photo

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