Institution: Fed expects economic potential to continue to soft landing

Huobi HTX reported that Maulik Bhansali, senior portfolio manager at Allspring Global Investments, said that the greater impact on the credit market is not the 25 basis point rate cut, but the Economic Outlook Summary. These data show that there may be two more rate cuts this year, while GDP growth expectations have increased slightly. Despite increased labor market concerns, unemployment is expected to drop slightly. All of these factors combined suggest that the economy may continue to soft landing, which is very beneficial to the credit market. Yields remain attractive, especially those at the far side of the curve, which should keep investors looking at the credit market despite higher valuations. What we need to pay attention to now is that as the rate cut cycle restarts and stocks hit record highs, rising M&A activity may accelerate, which may catch some credit investors off guard.