Capital Group: Stay invested and maintain a long-term perspective
Experts from Capital Group respond to the Federal Reserve's interest rate decision.
Macro Commentary
Robert Lind, Economist at Capital Group: “The Federal Reserve’s decision to hold rates underscores the delicate balance it faces amid persistent inflation, slowing U.S. growth, and heightened policy uncertainty. While tariffs and geopolitical tensions have weighed on sentiment and activity, we believe this is a moment to remain focused on long-term fundamentals. History shows that markets can adapt and recover, even in the face of significant disruption. In this environment, we continue to take a measured approach—prioritizing time in the market over timing the market—and remain anchored in disciplined, bottom-up analysis to navigate through volatility and identify enduring opportunities.”
Equities Commentary
John Lamb, Equity Investment Director at Capital Group: “Equity markets are contending with a complex backdrop of trade realignment, inflationary pressures, and shifting global alliances. Yet, we see this as a time for active investors to lean into selectivity. Companies with robust business models, strong management teams and the ability to adapt—such as multinationals embracing a “multi-local” strategy—are well positioned to weather near-term turbulence. We are particularly constructive on sectors tied to health care, industrials and digital infrastructure. While volatility may persist, we believe that staying invested and focusing on long-term value creation remains the most effective way to compound returns over time.”
Fixed Income Commentary
Jeremy Cunningham, Fixed Income Investment Director at Capital Group: “With the Fed holding cash rates steady and the yield curve steepening, fixed income markets are offering compelling opportunities for long-term investors. We continue to favour a flexible, diversified approach—anchored in high-conviction security selection—to navigate the evolving macro landscape. Investment-grade corporates in defensive sectors like pharmaceuticals, utilities and European banks offer attractive yields and resilience, while high-yield bonds in the upper-quality tier present selective opportunities. In our view, bonds are once again fulfilling their traditional role as portfolio stabilisers. Rather than attempting to time rate moves, we believe that maintaining a long-term perspective and focusing on quality and valuation will be key to generating durable income and capital preservation.”
