Former Morgan Stanley Asia Chairman: The Federal Reserve is focusing on risk shifts, and the US stock market may experience a correction

Jinse Finance reported that regarding expectations of interest rate cuts, Stephen Roach, Senior Fellow at Yale University and former Chairman of Morgan Stanley Asia, pointed out that the Federal Reserve will not rush to adjust its policies due to political pressure. On the other hand, vulnerabilities in the labor market, coupled with disruptions from tariff factors, may prompt the Federal Reserve to adopt a more accommodative stance. Although current risks have changed, the magnitude is not yet significant, and future developments will still depend on upcoming data. Roach also stated that the U.S. economy has shown signs of slowing down, with consumption growth only half the average level of the past few years. In addition, the investment boom in the AI sector hides bubble risks, and the market capitalization concentration of the "Magnificent Seven" U.S. stocks has even surpassed the level seen during the internet bubble in 2000. "Therefore, I believe that the U.S. stock market is likely to experience a certain degree of correction within the next six months," he said. (21 Finance)