Harley Bradley, Co-Head of Global Rates at Insight Investment, said in a report that the rate cut environment could be good news for those investing in US bonds through globally diversified fixed income portfolios. Despite the possibility of higher inflation due to tariffs, the Federal Reserve will cut rates on Wednesday. Given the relatively stubborn inflation in the US, the market will closely watch the latest "dot plot" forecast from the Federal Reserve for future rate cuts after September. In our view, although inflation may complicate matters, we believe the Federal Reserve will be prepared to "ignore" inflation above target to protect the labor market.
