Bloomberg Daybreak: Asia Edition US Futures, APAC Stocks Gain After Fed's First Rate Cut of 2025
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Sep 18, 2025 George Schultze, Founder and CEO of Schultze Asset Management, shares insights on the Federal Reserve's pivotal rate cut, exploring its effects on equities and banking sectors. He discusses the ongoing risks related to tariffs, labor markets, and stagflation. Joining him, Stephanie Leung, Chief Investment Officer at StashAway, highlights what's fueling the rally in Asia-Pacific markets, including the impact of the Fed's decision, the stabilization in China, and shifts in consumer trends driven by AI investments. Together, they decipher the evolving investment landscape.
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Fed Begins A Cut Cycle
- The Fed cut rates by 25 basis points and signaled two more cuts this year, shifting the policy outlook.
- Powell cited labor-market risks while warning there is "no risk-free path" ahead for policymakers.
Rate Cut Eases Curve Pressure
- George Schultze called the 25bp cut expected and said it helps banks by easing early-curve risk.
- He viewed the move as preemptive and supportive for net interest income and spreads.
Tariffs Aren't The Main Inflation Driver
- Schultze downplayed tariff-driven inflation and emphasized the labor market as the larger concern.
- He expects tariffs to repatriate capital and not be the primary inflation driver now.