The Fed has switched emphasis to supporting the labour market as “confidence has grown that inflation is on a sustainable path back to 2%”, says Koh. Fed Chairman Jerome Powell stated in his speech at Jackson Hole last month that “the upside risk to inflation has diminished but the downside risk to employment has increased”.
UOB Kay Hian Research analyst Jonathan Koh sees “double happiness” in September, as simultaneous rate cuts expected in the US and the Eurozone represent positive catalysts for S-REITs.
The new era of lower interest rates has begun, writes Koh in a Sept 5 note. The governing council of the European Central Bank (ECB) will hold its monetary policy meeting on Sept 12, followed by the US Federal Reserve’s Federal Open Market Committee (FOMC) meeting on Sept 18.
