JP Morgan Asset Management indicates that a soft landing is still likely despite elevated inflation. “Perhaps what is more notable is the updated dot plot. Of the 18 FOMC members, nine see rates ending the year between 5.5%–5.75% while three see rates above 5.75%. This now suggests the median FOMC member anticipates two more rate increases, a hawkish surprise compared to market expectations,” JP Morgan says.
Have equity markets discounted the US Federal Reserve’s pause and a China slowdown? Based on the chart pattern of DBS Group Holdings (SGX:D05
) that may well be the case for Singapore’s largest company by market capitalisation and potential earnings this year.
While the US economy continues to “run hot”, the latest inflation figures have enabled the US Fed to halt its punitive rate hike momentum, albeit temporarily.
