Björn Jesch, global chief investment officer at DWS, said that despite the recent market turmoil, the Federal Reserve is likely to continue on its expected policy path. He said in a note that a panic-driven response from the Fed is unlikely, and he expects the central bank to try to avoid signaling a major shift in policy, such as a 50 basis point cut or an emergency rate cut between meetings. He expects the Fed to stick to a gradual easing approach, cutting rates by 25 basis points one by one over the next few months, starting in September. A recession in the U.S. economy cannot be ruled out, but given the overall strength of the economy and the robust balance sheet of the private sector, a recession, if it does occur, is likely to be mild. The DWS does not believe a bear market is imminent, but will closely monitor indicators that reflect systemic risk.