Global Interest Rate Dynamics & Economic Outlook:GTC FX Chief Analyst Jameel Ahmad In-Depth Analysis

Recently, the Dow Jones Index rose by over 1%, signaling investor expectations for further rate cuts. In this context, TRT WORLD invited GTC FX's Chief Analyst Jameel Ahmad for an in-depth interview to discuss global interest rate dynamics and economic conditions. Although Jameel typically works in Dubai, he traveled to Istanbul for this occasion.

**Overall Interest Rate Situation**

In response to TRT WORLD's questions, Jameel noted that since the 2020s, the global economy has faced multiple crises, including the pandemic and the Russia-Ukraine conflict, leading to severe inflation shocks. To tackle these challenges, central banks are attempting to restore market normalcy through interest rate adjustments. While rates are unlikely to return to the ultra-low levels seen during the pandemic, central banks are working to bring rates back to a relatively low and stable state to restore normal market order.

**Bank of Japan's Policy**

When discussing the Bank of Japan's policy, Jameel mentioned that after significant market fluctuations in August, the bank chose to maintain interest rates and hinted at potential future increases. This strategy aims to find a balance between economic adjustment and market stability. The recent volatility of the yen and the Nikkei index reflects this complexity. Jameel believes the Bank of Japan is signaling an upcoming rate increase, as Japan seeks to adjust its economy to accommodate higher rates.

**Fed Rate Cuts and U.S. Tech Stocks**

The Federal Reserve's rate cuts have sparked a rally in U.S. tech stocks; however, Jameel cautions that a potential bubble in the tech sector remains a concern. He emphasized that low rates are generally beneficial for global assets and stock markets, but investors should be wary of the risks that the Fed's actions may entail. Jameel believes that the current rise in tech stocks is driven by the Fed's unexpectedly aggressive rate cuts, which have encouraged more funds to flow into the stock market.

**Conclusion**

In summary, global interest rate dynamics are profoundly influencing economic trends and market confidence. As countries navigate these challenges, central banks and governments need to balance various factors to ensure economic stability and growth. Jameel's analysis provides deep insights into the current global economic landscape.