Mechanism: Market Volatility to Intensify Ahead of Fed Meeting Next Week and US Election
Lewis Grant, senior portfolio manager for global equities at Federated Hermes, said that financial markets may continue to be volatile as the US election approaches due to uncertainty over the outcome. He stated that the first presidential debate between Democratic nominee Harris and Republican nominee Trump offered little in terms of substantive policy explanations. "Uncertainty around which candidate's economic agenda will prevail – or even what those agendas are – will influence market sentiment." Federated Hermes expects market volatility to intensify in the lead up to next week's Fed meeting and the US election. "In the near term, the market will be quick to react to developments in the US election and the macro outlook." (Gold Ten)