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If the economy is in recession, the Fed may start a series of rapid rate cuts in June
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3 hours ago 2,544
According to Golden Finance, institutional analysis pointed out that the Fed will not lower interest rates at next week's policy meeting, but a series of rapid rate cuts may begin in June if concerns about a recession caused by the trade war are intensified and come true. In the futures market, at least in the futures market, more and more contracts are betting that the Fed will cut interest rates by 25 basis points each in June, July and October, a trend that follows last weekend's remarks about the "transition period" as he imposes tariffs on multiple countries. U.S. stocks and U.S. Treasury yields also fell on Monday amid concerns that his remarks herald an impending recession. "Although it seems calm on the surface, labor or financial markets are beginning to fall in the slump if the Fed is not able to assess tariffs and the impact of the Trump agenda on inflation as a whole, and the (Feder policymaker) are increasingly concerned about the rising risk of the dual mission and the ability to resist U.S. President Trump's pressure to cut interest rates," Tim Duy, chief U.S. economist at SGH Macro Advisors, wrote in a note. "The slow-responsive Fed will induce anger from the Trump administration."
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