The Fed's rate cuts may be smaller than expected, with the terminal policy rate above 3.5%

According to Golden Ten Data, Franklin Templeton pointed out that the US economy is growing steadily and consumers continue to spend, but concerns about inflation may lead the Federal Reserve to cut interest rates less than expected. It is anticipated that the terminal policy rate in this cycle may be higher than 3.5%, which is above the market consensus of around 3%. In addition, the financial health of US companies has improved, default rates remain low, and the outlook for non-investment grade bonds is still optimistic.