DWS: The Federal Reserve is expected to cut interest rates twice by May next year.

Glonghui, June 24 — DWS expects the US economy to grow by 3.2% this year, with a forecast of 2.3% for next year, and notes that AI may be an important contributing factor to the US economy. DWS Asia Pacific Chief Investment Officer Wu Shuangrong anticipates that the Federal Reserve will cut interest rates twice before May next year, bringing the federal funds rate target range down to between 3% and 3.25%. She explained that the Federal Reserve is mainly focused on inflation expectations and the unemployment rate. Oil prices are causing economic growth to slow, but the situation remains under control. On the other hand, the market worries whether AI might replace part of the workforce, thus reducing potential job openings. Regarding the development of AI stocks, she believes that there will not be a bubble burst in the next 12 months, but emphasizes the need to continue monitoring several indicators, including valuation multiples, corporate earnings, and balance sheets.