Global X Strategist Sees Potential for Fed Rate Cuts in the First Quarter

2026-02-09 23:09:24

Abstract generation in progress

Latest analyses from Global X indicate that the Federal Reserve’s potential interest rate cuts could occur sooner than market expectations. Scott Helfstein, Global X’s Head of Investment Strategy, pointed out that the pressure from current real interest rates creates favorable conditions for more flexible monetary policy.

Real Interest Rate Pressure Is Driving Policy

According to PANews, Helfstein analyzed that the current high real interest rates tend to send dovish signals from the Federal Reserve. He believes that the central bank may adopt a more cautious approach than what the market currently anticipates. If this happens, investors could see rate cuts begin as early as the first quarter of 2026.

Earnings Season Reflects Market Potential

Currently, the stock market is driven by solid fundamentals. The ongoing earnings season has demonstrated strong potential, with companies not only meeting high profit expectations but also reaffirming their guidance. This indicates growth potential remains in the economy, although interest rate pressures continue to be a key factor influencing monetary policy decisions.

These analyses suggest that the possibility of an earlier monetary easing is quite realistic, based on the combination of high real interest rates and optimistic signals from the business sector.

View Original

This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.