An investment company executive: Regardless of short-term fluctuations, falling interest rates are the general trend

Shannon Saccoci, chief investment officer of the wealth department of a private investment management company, recently issued a memorandum, and the core meaning is clear: don’t worry about whether the Fed will cut interest rates this week, the general direction is certain - interest rates will definitely go down.

Her logic is this: while the market has fluctuated back and forth in expectations for the 25 basis point rate cut on December 10, the Fed’s overall accommodative attitude is there, which is a good sign for the US economy and the risk asset market. The economy has accelerated again, and risk assets naturally have room to rise.

Saccoci emphasized one point in particular - the specific timing and magnitude of interest rate cuts do have variables, but the “terminal” is clear: by the second half of next year, the federal funds rate will be lower and the policy will be looser. In other words, short-term fluctuations cannot change long-term trends. For investors who hold risky assets, this expectation is quite critical.