SDAX

  Amid increasing talk of cutting interest rates, how can you protect your investments?  Amid a cooling US jobs market and declining inflation, it now seems almost certain that the Federal Reserve (‘the Fed’) will cut interest rates in September. The Fed has continued to raise the federal funds rate – the interest rate it charges to its member banks, and a key lever for controlling money supply and inflation – for an unprecedented 11 times over a 16-month period. Concerns about a potential recession have also eased considerably in a short space of time. Investors have recently been pricing in a “Goldilocks” scenario of strong growth with moderate inflation. This came after a period when analysts were questioning whether the Fed had risked the US economy slipping into recession due to its slowness in cutting rates. The Bank of England, meanwhile, spent two years putting up interest rates at nearly every meeting, and then for a year after that, left them at a painfully ...