Huachuang Securities: The US fiscal credit crisis is imminent, and the Federal Reserve's independence may yield to fiscal goals to strengthen interest rate cut expectations
HuaChuang Securities analyst Yao Pei pointed out that currently, long-term US Treasury yields continue to rise, gold is strengthening, and the dollar is under pressure. The AI industry is being drawn in as capital expenditures shift towards debt financing, leading to increased financing costs. Market expectations for the Federal Reserve's interest rate hikes this year have converged from two hikes at the end of July to only one hike expected in December. HuaChuang Securities believes that to control the upward pressure on US Treasury yields, the Federal Reserve's independence may further yield to fiscal objectives, ultimately pointing towards monetary easing and interest rate cuts. The institution recommends allocating to resource commodities and AI technology, and paying attention to high-dividend assets.
Source:华尔街见闻 · Source Link
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