State Street Investment Management CEO Yie-Hsin Hung says the Federal Reserve should hold interest rates steady for the rest of the year and is steering investors toward gold and private markets as portfolio anchors instead. Her call follows a rate-cut view she voiced in November 2025, as other asset managers also expand into alternative assets.
Yie-Hsin Hung, President and CEO of State Street Investment Management, argues the US economy is in solid enough shape that the Federal Reserve should not raise interest rates for the remainder of the year. Hung, who oversees more than $5 trillion in assets, is telling investors to lean on gold and private markets as portfolio anchors instead.
Back in November 2025, she publicly supported a 25-basis-point rate cut by the Fed for December 2025, citing rising economic risks that warranted measured easing rather than aggressive action in either direction. State Street Investment Management operates in more than 60 countries, giving Hung's team a global vantage point on markets.
A no-hike environment would remove one of gold's biggest headwinds, since higher rates increase the opportunity cost of holding a non-yielding asset like gold. If the Fed avoids a rate hike and holds steady, she argues, stable monetary policy tends to reduce the kind of uncertainty that drives capital to the sidelines. Hung isn't framing gold as a tactical trade — she calls it a portfolio anchor that belongs at the core of allocation, not the margins.
Private markets represent a longer-term bet for Hung, who has spent much of her career expanding private equity and hedge-fund capabilities. She argues they offer return profiles and diversification that public equities and bonds increasingly struggle to match in volatile environments. The emphasis on alternatives extends beyond State Street: BlackRock, Vanguard and Fidelity have all been expanding their private-market offerings as well, and Hung's earlier warnings about economic risk suggest the gold-and-alternatives push doubles as a hedge against the same downside she flagged in November.
Source: Crypto Briefing
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