Asian Currencies Steady as U.S.-Iran Ceasefire Extension Hopes Weigh on Dollar 
UK Grocery Inflation Slows to 3.1% as Supermarket Price Pressures Ease in May 2026 
Wall Street Hits New Highs as U.S.-Iran Ceasefire Talks Boost Market Sentiment 
Tokyo Inflation Cools in May, Supporting BOJ’s Cautious Rate Hike Path 
South Korea Central Bank Holds Interest Rates Steady Amid Inflation Concerns 
US Dollar Slips as Markets Weigh Potential US-Iran Peace Deal and Oil Price Outlook 
Asian Stocks Rally as AI Boom and Iran Ceasefire Progress Lift Market Sentiment 
U.S. Sanctions Iran’s Strait of Hormuz Authority as Global Oil Markets Face Turmoil 
US Launches New Trade Investigation Into Vietnam Over Intellectual Property Concerns 
European EV Sales Surge in April 2026 as Tesla and Chinese Automakers Gain Ground 
New World Screwworm Found Near U.S. Border Raises Threat to Cattle Industry and Beef Prices 
Oil Prices Jump After New U.S. Strikes on Iran Raise Supply Concerns 
Oil Prices Set for Sharp Weekly Losses as U.S.-Iran Ceasefire Hopes Ease Supply Concerns 
Gold Prices Slip as Stronger Dollar and Iran Peace Talk Uncertainty Weigh on Market 
Dollar Gains Slightly as U.S.-Iran Tensions Keep Forex Markets on Edge 
S&P 500, Nasdaq Hit Record Highs as Iran Ceasefire Talks and AI Rally Boost Markets 
Wells Fargo analysts believe that the recent rate cut by the Federal Reserve is the beginning of multiple reductions aimed at fueling market growth opportunities in 2025. The bank advises focusing on the long-term trajectory of rates, not the size of individual cuts.
Last week’s 50 basis point (bps) rate cut caught some investors off guard, though the fed funds futures market had priced in a 58% chance. “The important concept to latch onto over the past two months was not the ultimate size of the first cut but that the September policy meeting represented the first in what is likely to be a series of Fed rate reductions expected to last well into next year,” wrote Wells Fargo analysts.
Economic Support and Labor Market Growth
The bank anticipates that the expected series of rate reductions will support economic growth and labor markets. Federal Reserve Bank of Chicago President Austan Goolsbee supported this view, suggesting that further rate cuts will likely be needed to bolster the economy.
Wells Fargo projects that the Fed will reduce rates by 25 bps at both of the remaining Federal Open Market Committee (FOMC) meetings in 2024, totaling 100 bps of cuts by year-end. However, the bank notes that the timing of potential rate cuts in 2025 is still uncertain.
No Recession Anticipated, Moderate Slowdown Expected
While Wells Fargo expects a slowdown in the U.S. economy toward the end of 2024, they do not predict a recession. Instead, the bank foresees a moderate economic slowdown, followed by a positive impact from rate cuts. By the first and second quarters of 2025, Wells Fargo expects the domestic economy to benefit from the easing cycle, which could also enhance S&P 500 earnings, as about 35% of the index’s revenues come from international markets.
"Last week’s Fed rate cut is just the beginning in what is likely to be a series of rate reductions that should help spark broader opportunities next year,” the bank concludes.
