“Outside Germany, investors appear frustrated with the lack of progress: there are no signs of the German government turning on the spending machine,” analysts at Deutsche Bank said in a note on Wednesday. “Powell later clarified that the effectiveness of today’s cut was coming not from the effects of one 25bp rate cut, but from the market pricing-in further cuts — suggesting that in their base case Fed officials will follow markets and the dot plot and cut 75bp this year,” Citi said in a note on Wednesday. Meanwhile, equity strategists at JPMorgan pointed out on Thursday that the S&P 500 has gained an average of 26.5% in the second year of an easing cycle, assuming no recession, compared to a 13.7% gain in the first year.
Author: Jason Ma
Published at: 2025-09-21 22:14:51
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