US Interest Rate Repricing Expected to Increase Market Volatility, Says Deutsche Bank's Holtze-Jen

In a recent forecast, Deutsche Bank economists, led by Lars Holtze-Jen, announced that the anticipated repricing of interest rates in the United States will lead to increased market volatility. They noted that current changes in economic policy and financial conditions are creating tension in the market, which is only expected to rise with rate shifts. The bank's experts warn that such changes could significantly impact various sectors of the economy, including bond and equity markets.

According to Holtze-Jen, the assessment of the likelihood of further rate hikes by the Fed and market responses to these changes will be a driving factor in enhancing volatility. Existing uncertainty in financial markets, driven by economic conditions such as inflation and unemployment levels, continues to pressure investors.

Analysts also emphasize that amid macroeconomic instability, investors may start to react more actively to news about rate hikes/cuts, which in turn could lead to sharp market fluctuations. In this regard, Holtze-Jen advises investors to be prepared for potential changes and not to panic at the first signs of volatility.

In conclusion, Deutsche Bank economists highlight that market attention is focused on the actions of the Federal Reserve and their consequences. Their predictions regarding future changes in the economy and financial markets underscore the importance of a cautious approach to investments in the current environment.

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