Golden Finance reported that when discussing interest rate cut expectations, Stephen Roach, a senior researcher at Yale University and former Chairman of Morgan Stanley Asia, pointed out that the Fed will not be rushed to adjust its policies due to political pressure. On the other hand, the vulnerability of the labor market, along with the disturbances caused by tariffs, may prompt the Fed to adopt a more accommodative stance. Although current risks have changed, the extent is not yet severe, and future developments will still depend on the performance of upcoming data. Roach also stated that the U.S. economy has shown signs of slowing, with the consumption growth rate only half of the average level over the past few years. Additionally, the investment boom in the AI sector hides the risk of bubbles, and the market capitalization concentration of the "Big Seven" in the U.S. stock market has even exceeded the levels seen during the internet bubble in 2000. "Therefore, I believe that a certain degree of market correction is likely to occur in the U.S. stock market within the next six months," he said. (21 Finance)
View Original
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
Former Chairman of Morgan Stanley Asia: The Fed is concerned about the shift in risks, and the U.S. stock market may see a correction.
Golden Finance reported that when discussing interest rate cut expectations, Stephen Roach, a senior researcher at Yale University and former Chairman of Morgan Stanley Asia, pointed out that the Fed will not be rushed to adjust its policies due to political pressure. On the other hand, the vulnerability of the labor market, along with the disturbances caused by tariffs, may prompt the Fed to adopt a more accommodative stance. Although current risks have changed, the extent is not yet severe, and future developments will still depend on the performance of upcoming data. Roach also stated that the U.S. economy has shown signs of slowing, with the consumption growth rate only half of the average level over the past few years. Additionally, the investment boom in the AI sector hides the risk of bubbles, and the market capitalization concentration of the "Big Seven" in the U.S. stock market has even exceeded the levels seen during the internet bubble in 2000. "Therefore, I believe that a certain degree of market correction is likely to occur in the U.S. stock market within the next six months," he said. (21 Finance)