Fed Decision Preview: The Fed's Rate Cuts in This Easing Cycle May Be Less Than Expected

Franklin Templeton Investments noted on Wednesday that while the US economy is growing steadily and consumer spending continues, inflation concerns are expected to lead to a smaller-than-expected rate cut by the Federal Reserve. They project the current policy rate to peak at around 3.5%, higher than the market consensus of around 3%. However, given the improved health of US companies and low default rates, they remain optimistic about the outlook for non-investment grade bonds. (Jinshi)