The US economy is slowing, with rising unemployment and other signs of recession. But a ‘soft landing’ is expected amid indications of rising labour supply and robust corporate profitability.

The Federal Reserve has initiated a series of consecutive interest-rate cuts that will continue through this year and into the middle of next year. This should help the Fed be perceived as proactive, rather than reactive, in its easing.

The European Central Bank and the Bank of England are also set to continue their rate-cutting cycles into 2026, while the Bank of Japan is likely to hike rates due to inflation pressures.

China has implemented substantial policy easing, including rate cuts and fiscal measures, to address weak growth and low inflation. That said, structural economic challenges remain.

The US election is highly competitive, with significant potential for market volatility as the race between Harris and Trump is close. This will affect the policy outlook and economic sentiment.