Senior investment strategist at Foo Ken Yap of Standard Chartered Bank predicts that the US Federal Reserve will cut interest rates despite expecting opposition from various market quarters. According to YAP, the Fed may take unexpected actions to mitigate the impact of the bond market and lend support for overall economic growth.
The research strategist acknowledged concerns about the US budget deficit. However, he predicted that the 10-year Treasury bond yield in the US would fall from 4.59% to 4.25%. On top of this, Standard Chartered Bank’s YAP and his team remain optimistic about US stocks.
Standard Chartered’s YAP: Cut interest rates and raise bonds and stocks
Bank research reflects the belief that key corporate investments and resilient revenue expectations will continue to support the market. In the meantime, Standard Chartered Bank recognized the value and role of gold as a hedge against inflation and risks associated with the recession.
Related: Bull: Tariff effects as the country begins to cut interest rates
YAP forecasts increase analysis and expert forecasts of potential US economy outcomes in 2025.
Morgan Stanley draws another picture: 2025 bull, risk looming for the recession
Several stories emerged from the beginning of the year after growing uncertainty over the Trump administration’s final decision on various economic issues. However, analysts at Morgan Stanley believe the coast is unknown, and financial worries continue in the US.
Related: BTC prices rise as markets react to Fed interest rate hikes
Analysts say the job market is weakening, causing a slower economic activity. Customs duties now remain. Analysts believe it could increase inflationary pressure and force the Federal Reserve to the corner.
Gold, Bitcoin is attractive when investors are looking for shelter
Investors usually seek shelter with alternative assets such as gold and Bitcoin whenever the economic atmosphere becomes unclear. Experts believe that capital rotation into Bitcoin and other digital assets have already begun.
The change is particularly noteworthy as BTC resumed rallies from the beginning of April, reaching a new all-time high of $111,888 just hours before the report was submitted on May 22, 2025.
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