Fed Expected to Cut This Year as Lengthy War Weighs on Growth -- Market Talk

Dow Jones01:39

1339 ET - As the Iran conflict continues, rising U.S. inflation expectations support markets' pricing of a long interest rate hold, or even a hike. But a prolonged war is likely to become a headwind for activity and cause a rate cut. "This is becoming more of a growth story than an inflation story," AllianceBernstein's Scott DiMaggio says. He braces for a slowdown in the 2H and expects the Fed to cut. He is buying Treasurys as yields rise more than his estimate of fair value, making bonds look cheap. DiMaggio expects volatility as the conflict unfolds, but "if growth plays out like we think, rates can go lower from here." (paulo.trevisani@wsj.com; @ptrevisani)

(END) Dow Jones Newswires

May 05, 2026 13:39 ET (17:39 GMT)

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DiMaggio expects volatility as the conflict unfolds, but \"if growth plays out like we think, rates can go lower from here.\" (paulo.trevisani@wsj.com; @ptrevisani) \n</p>\n<p>\n  (END) Dow Jones Newswires\n</p>\n<p>\n  May 05, 2026 13:39 ET (17:39 GMT)\n</p>\n<p>\n  Copyright (c) 2026 Dow Jones &amp; Company, Inc.\n</p>\n</font>\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"BOND","symbol_name":"Pimco Total Return ETF","start_time":0,"source_url":"https://dowjonesnews.com/newdjn/logon.aspx?AL=N","article_id":"2633940362","we_media_id":"106","thumbnails":[],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2633940362","pubTimestamp":1778002740,"columns":[],"sourceInfo":null,"weMediaInfo":{"media_name":"Dow Jones","introduction":"Dow Jones publishes the world’s most trusted business news and financial information in a variety of media.","home_visible":0,"id":"106","head_image":"https://static.tigerbbs.com/150f88aa4d182df19190059f4a365e99"},"summary":"1339 ET - As the Iran conflict continues, rising U.S. inflation expectations support markets' pricing of a long interest rate hold, or even a hike. 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But a prolonged war is likely to become a headwind for activity and cause a rate cut. \"This is becoming more of a growth story than an inflation story,\" AllianceBernstein's Scott DiMaggio says. He braces for a slowdown in the 2H and expects the Fed to cut. He is buying Treasurys as yields rise more than his estimate of fair value, making bonds look cheap. DiMaggio expects volatility as the conflict unfolds, but \"if growth plays out like we think, rates can go lower from here.\" (paulo.trevisani@wsj.com; @ptrevisani) \n\n\n  (END) Dow Jones Newswires\n\n\n  May 05, 2026 13:39 ET (17:39 GMT)\n\n\n  Copyright (c) 2026 Dow Jones & Company, Inc.","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"-1","news_tag":"","news_rank":0,"isVideo":false,"video":null,"symbols":[],"gpt_button":0,"need_auth":true,"need_login_tip":false,"code":"91000000","status":"200"},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"tenantId":"TBGLOBAL","deviceId":"web-server-community-laohu8-v3","version":"4.42.1","shortVersion":"4.42.1","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2633940362","isCrawlerRequest":true}