Chief Economist & Political Strategist, CrossASEAN Research

Prasenjit K. Basu

PK Basu has 35 years experience covering Asia's economies and markets (equities, fixed income and currencies), including 20 years covering the global economy. He was Chief Economist (SE Asia & India) at Credit Suisse First Boston for 5 years, and Chief Asia (x-Jpn) Economist at Daiwa Securities for a similar period. Among other roles, he was global head of research at Maybank Kim Eng, Malaysia equity research head and chief ASEAN economist at Macquarie, Chief Economist at ICICI Securities, ASEAN economist and Asia sector strategist at UBS and the first chief economist at Khazanah Nasional (where he was co-head of research, and led all agri-business initiatives). PK Basu started his career in the Asia Service of WEFA (Wharton Econometrics) in Philadelphia in 1990, rising to be Director of their Asia Service in June 1994. 
PK's book, "Asia Reborn: A continent rises from the ravages of Colonialism and War to a New Dynamism" won the Tata Literature First Book Award (non-fiction) for 2018. It is the first single chronicle of the modern economic and political history of the whole of Asia (from Iraq and Turkey to Korea and Japan, and everything in between), told from an Asian perspective.

Chief Economist & Political Strategist

Fed Cuts Amid “Data Fog”; Path Ahead Uncertain

US: Inflation Edges Up, but Previous Policy Errors Must Be Atoned with Rate Cut Now

CrossASEAN Research

At CrossASEAN Research we strive to produce unbiased and differentiated on the ground insights on companies across South East Asia. Our Research is produced for the most part after face to face meetings and conversations with company management to dig deep into the long term vision and strategy of the companies we cover. We seek to deliver investable and actionable themes on sectors and markets across SE Asia, often in collaboration with other Insight Providers across the region, pooling the vast experience of the analysts within the Smartkarma Ecosystem. We also offer bespoke work and tailor made trips for our clients. 

Insights across South East Asia

Macroeconomics

<ul>
<li>A divided FOMC cut by 25bp as expected, but Powell signalled Dec'25 cut was far from a foregone conclusion; instead the FOMC was strongly committed to returning to 2% inflation. </li>
<li>US$88.8bn decline in base money (Mar-Aug'25) has held M2 and inflation in check. The end of QT from Dec'25 will be a form of easing, precluding rate cuts until Jan'26. </li>
<li>FOMC voting shows doves isolated, and Powell-led FOMC will stay hawkish until Jan'26, especially amid fogginess on inflation data. The next rate cut is unlikely until Mar'26. </li>
</ul>


A divided FOMC cut by 25bp as expected, but Powell signalled Dec'25 cut was far from a foregone conclusion; instead the FOMC was strongly committed to returning to 2% inflation. 
US$88.8bn decline in base money (Mar-Aug'25) has held M2 and inflation in check. The end of QT from Dec'25 will be a form of easing, precluding rate cuts until Jan'26. 
FOMC voting shows doves isolated, and Powell-led FOMC will stay hawkish until Jan'26, especially amid fogginess on inflation data. The next rate cut is unlikely until Mar'26. 


Dow Jones Industrial Average (INDU INDEX)

iShares 20+ Year Treasury Bond ETF (TLT US)

US: No More Rate Cuts Likely from the Powell Fed; More Dovish FOMC by Q2 2026