Analyst: Why might the Federal Reserve be forced to cut interest rates urgently?
Analysts suggest that the Federal Reserve may be forced to cut interest rates before its next meeting in September to prevent a feedback loop between the market and the real economy that could trigger a recession. Currently, everything is market-related. The Bank of Japan raised interest rates, followed by the release of weaker-than-expected economic data in the United States, which has loosened the already extreme global imbalances. In such times, nearly impossible events can quickly become possible. The pace of economic deterioration has not suddenly accelerated - last week's employment data is not a definite sign of a recession, and the triggering of the "Sam Rule" has simply shifted people's attention. However, when these factors come to the forefront, these positions will create opportunities that become reality, especially when geopolitical tensions escalate. While today's economy may not be much different from last week, the market's shift towards pricing in the prospect of a recession actually makes a recession more likely. The Federal Reserve may now be compelled to cut interest rates this month to prevent asset price declines from transmitting to the real economy and triggering an economic downturn
Jinshi Data, August 5th news, analysts said that the Federal Reserve may be forced to cut interest rates before the next meeting in September to prevent a feedback loop between the market and the real economy that could trigger a recession. Currently, everything is related to the market. The Bank of Japan raised interest rates, followed by weaker-than-expected economic data from the United States, triggering a loosening of the already extreme global imbalances. In such times, almost impossible things can quickly become possible. The speed of economic deterioration has not suddenly accelerated - last week's employment data is not a definite sign of a recession, and the triggering of the "Sam Rule" has only shifted people's attention. However, when these factors come to the fore, these positions will create opportunities that become reality, especially when geopolitical tensions escalate. Although today's economy may not be much different from last week, the market's shift towards pricing in the prospect of a recession actually makes a recession more likely. The Federal Reserve may now be forced to cut interest rates this month to prevent asset price declines from transmitting to the real economy, triggering an economic recession