According to the Zhicheng Finance APP, the Federal Reserve has lowered the benchmark interest rate by 25 basis points to a range of 4.25%-4.5%, but Federal Reserve Chairman Jerome Powell stated that due to stronger-than-expected performance in the economy, labor market, and inflation, inflation may take longer to reach the target of 2%. In this regard, Liang Junfei indicated that HANG SENG BANK believes that next year US corporations will benefit from tax cuts and a more comprehensive sectoral earnings recovery. Of course, the future impact of Trump's tariff policies on US inflation remains uncertain, but it is expected that his new policies will not aim to disrupt the US economy and inflation. After a 20% increase in the US stock market this year, valuations are no longer cheap, so the volatility in the future is expected to be higher, making it vital to diversify sector investments rather than concentrating solely on high-growth stocks.

Liang Junfei pointed out that the latest dot plot from Federal Reserve officials shows that the authorities expect to slow the pace of interest rate cuts to 2 times next year (down from an earlier expectation of 4 times in September), with another 2 cuts anticipated in 2026 (consistent with the September forecast). The long-term interest rate forecast has slightly risen to 3%.

The market reacted with surprise, interpreting the Federal Reserve's sudden shift to a hawkish stance. The US dollar index broke through the high level of 108 reached at the end of November on the night of the interest rate meeting, and the US stock market experienced significant adjustments, with the Nasdaq dropping the most. The yield on 10-year US Bonds rose 10 basis points to 4.5%, resulting in some sell-off in long-term bond prices.

Liang Junfei believes that in fact, the Federal Reserve had previously underestimated the performance of the US economy, and the latest remarks are primarily aimed at adjusting expectations for the economy and inflation. When the US economy and employment remain strong, the Federal Reserve should not rush to cut rates. The market's short-term sell-off after the interest rate meeting is believed to be the result of previously overly optimistic expectations of a persistently dovish Federal Reserve that have now been dashed.

She further pointed out that Asian stock market valuations are relatively low and are under less pressure from adjustments, and are expected to benefit from stimulus policies in mainland China and tight trade performance within the region. She believes that during times of significant volatility in the stock market, bond assets can play an important role in providing stable returns and mitigating overall investment risks, with future bond investments focused on USD bonds with a duration of 3-6 years and European bonds supported by a dovish ECB.