[BNP Paribas: The Fed Can Avoid a Deterioration in Market Confidence in Its Ability to Curb Price Increases] Jin10 News, September 17 – BNP Paribas analyst James Egelhof stated that even if the Federal Reserve cuts interest rates before inflation reaches the 2% target, it is still possible to avoid a deterioration in market confidence in its ability to curb price increases. He believes that the decline in market confidence is gradual, which provides Fed officials with time to respond. In addition to tracking market expectations through surveys, Egelhof also monitors demand for the U.S. dollar and 30-year U.S. Treasury bonds—both of which tend to weaken when the Fed shows signs of faltering in its fight against inflation. Furthermore, he keeps an eye on cryptocurrencies and gold: when the market perceives the Fed's policies as insufficiently effective, these two asset classes typically strengthen. 'The current risk premium has indeed risen,' he said. He pointed out that if market confidence were to decline significantly, more restrictive monetary and fiscal policies might follow.