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Fed Signals Higher Inflation: Asia-Pacific Investors Adjust Strategies

8/26/2025

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Story summary
  • The Federal Reserve signals a willingness to accept higher inflation, affecting asset allocation for Asia-Pacific investors.
  • Chair Powell hints at possible monetary policy easing in September due to labor market risks and ongoing inflation from tariffs.
  • Investors should consider hard assets like gold, given current equity valuations and systemic risks.