ChainCatcher news, DWS Global Chief Investment Officer Björn Jesch stated that despite recent market volatility, the Federal Reserve is likely to continue its expected policy path.In a report, he mentioned that the Federal Reserve is unlikely to react in a panic-driven manner, and he expects the central bank to try to avoid signaling a significant policy shift, such as a 50 basis point rate cut or an emergency rate cut between two meetings. He anticipates that the Federal Reserve will maintain a gradual easing approach, starting in September, with incremental rate cuts of 25 basis points over the coming months. While the possibility of a recession in the U.S. economy cannot be ruled out, considering the overall strength of the economy and the robust balance sheets of the private sector, even if a recession does occur, it may be mild. DWS does not believe a bear market is imminent but will closely monitor indicators that reflect systemic risks. (Jin Shi)

ChainCatcher news, analysts indicate that the Federal Reserve may be forced to cut interest rates before the next meeting in September to prevent a feedback loop between the market and the real economy that could trigger a recession.Previously, the Bank of Japan raised interest rates, and weaker-than-expected U.S. economic data triggered a loosening of the massive global imbalances that had accumulated to extreme levels. However, the pace of economic deterioration has not suddenly accelerated—last week's employment data was not a definitive sign of recession, and the triggering of the "Sam Rule" merely shifted market attention, with escalating geopolitical tensions also acting as a catalyst. The economic situation is not significantly different, but the market's shift towards pricing in recession prospects makes a recession more likely. The Federal Reserve may now be forced to cut interest rates within this month to prevent declines in asset prices from transmitting to the real economy, triggering an economic recession.