Opportunities and considerations to look out for when US finally cuts rates

At the Jackson Hole Economic Symposium, US Federal Reserve Chair Jerome Powell set the stage for a potential shift in monetary policy, signaling that interest rate cuts may be on the horizon. This development has significant implications for investors as they plan their strategies for 2025 and beyond.

Powell expressed confidence in the progress made in combating inflation, noting that it has substantially declined from its peak and is approaching the Fed’s 2% target. This optimistic stance immediately sparked a rally in global markets, with equities rebounding 1.4% and US indices nearing all-time highs.

For investors, this evolving landscape presents both opportunities and considerations. We remain cautiously optimistic on equities, with a preference for defensive sectors. We believe that