---
title: The Fed’s pivot is just around the corner
description: We expect the Fed rate cut cycle to start soon and proceed gradually. Barring a financial crisis or a sharp and unexpected change in the path of inflation or unemployment, the upcoming rate-cutting cycle won’t be dramatic; we expect the Fed to make incremental, 25 bps cuts to its policy rate. Moreover, the Fed is going to stay highly data dependent and will calibrate accordingly. Overall, this is a rather positive scenario for risk assets. Still, equity market valuations are becoming rich, especially in developed markets. Consequently, we keep our neutral stance on equities. We are upgrading all currencies (EUR, CHF, CHF, JPY, EM currencies) back to neutral vs USD (from Negative). Technicals have turned against the US dollar and the Fed has sent a clear signal about coming rate cuts.
---

[Slow food for thought](https://blog.syzgroup.com/slow-food-for-thought)

# [The Fed’s pivot is just around the corner](https://blog.syzgroup.com/slow-food-for-thought/the-feds-pivot-is-just-around-the-corner)

 Written by [Charles-Henry Monchau, CFA, CMT, CAIA](https://blog.syzgroup.com/slow-food-for-thought/author/charles-henry-monchau) | Sep 2, 2024, 12:09:19 PM

<https://blog.syzgroup.com/hubfs/Syz%20AAI%2096.pdf?hsLang=en><https://blog.syzgroup.com/hubfs/Syz-Downgrading%20credit%20from%20attractive%20to%20positive%20(1)-2.pdf?hsLang=en>

[View full post](https://blog.syzgroup.com/slow-food-for-thought/the-feds-pivot-is-just-around-the-corner)

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