New York: Liberator Securities analysts expect the Fed to hold rates steady at tonight's FOMC meeting, expecting three rate cuts in the second half of 2025, keeping an eye on the US-China trade talks in Switzerland later this week.
According to Thai News Agency, Mr. Wichit Arayapisit, investment strategist at Liberator Securities, discussed on the Investment Minutes program on Channel 9 MCOTHD, the upcoming Federal Open Market Committee (FOMC) meeting of the US Federal Reserve (Fed). It is anticipated that the Fed will maintain the policy interest rate within the range of 4.25-4.50%. Mr. Jerome Powell, Chairman of the US Federal Reserve, is expected to be cautious in policy implementation due to ongoing trade negotiations. However, the Fed is likely to reduce interest rates three times in the latter half of the year, with investment directions hinging on the trade negotiations.
Regarding the trade war issue, several countries have engaged in negotiations with the United States, awaiting outcomes on potential tariff reductions. These results are anticipated within 2-3 weeks, with the primary focus on China and the United States. The latest report indicates that the US Treasury Secretary will engage in negotiations with China in Switzerland at the week's end. Positive negotiations could enhance investment sentiment. In terms of currency, a short-term appreciation is expected, as countries involved in negotiations are unlikely to interfere with currency movements.
As for investment strategy, market indices are projected to fluctuate within 1,180-1,200 points, forming an investment base. The investment theme emphasizes stocks with strong performance, particularly within the communication sector, which is currently reporting its first-quarter 2025 results.