Chailease Investment Advisory Outlines Allocation Strategy for Rate Cuts and AI-Driven Markets

After Kevin Warsh took office as the new chair, the U.S. Federal Reserve shifted toward adjusting policy dynamically in response to inflation and employment data. Chailease Investment Advisory General Manager Su Hao-yi said AI is moving beyond generative assistants into agentic, edge and physical applications. The resulting productivity gains could create a long-term deflationary force, making the direction of interest rates and AI capital spending the main themes for asset allocation in the second half of 2026.

Chailease Investment Advisory said on July 3, 2026, that although the Fed had raised its 2026 PCE inflation forecast, its long-term policy remained on a rate-cutting path. It said the Fed was more likely to pursue balance-sheet reduction through five project teams than resume rate increases. Given concentrated investment flows and volatility in technology stocks, the firm recommended core allocations to the United States, Taiwan, Japan and South Korea, with diversification into Singapore and Vietnam equity funds and gold funds. The report did not specify allocation ratios or investment amounts.