If the economy experiences a recession, the Federal Reserve may start a series of rapid interest rate cuts in June

律动BlockBeats
律动BlockBeats|Mar 10, 2025 19:21
According to BlockBeats, on March 11th, institutional analysis indicated that the Federal Reserve will not lower interest rates at next week's policy meeting, but if concerns about an economic recession caused by the trade war intensify and come true, a series of rapid rate cuts may begin in June. At least in the futures market, more and more contracts are betting that the Federal Reserve will cut interest rates by 25 basis points each in June, July, and October, a trend that emerged after President Trump's comments on the "transition period" last weekend as he imposed tariffs on multiple countries. Due to concerns that his remarks foreshadowed an upcoming economic recession, US stock and bond yields also fell on Monday. Despite appearing calm on the surface, if both labor and financial markets begin to decline before the Federal Reserve can assess the impact of tariffs and the entire Trump agenda on inflation, (Federal Reserve policy makers) will become increasingly concerned about the risks of dual tasks and their ability to withstand pressure from President Trump to cut interest rates, "Tim Duy, Chief US Economist at SGH Macro Advisors, wrote in a statement." A sluggish Federal Reserve will provoke anger from the Trump administration. (Golden Ten)
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