Economists: Be cautious when betting on Fed rate cuts

Odaily News Cathy Bostyancic, a Fed watcher and chief economist at Nationwide, warned people to be cautious about betting on a Fed rate cut. She believes that investors are too eager to digest the impact of rate cuts. As concerns about a sharp economic slowdown grow, they generally expect the Fed's protective policies (Fed put) to cushion economic activity. Even assuming that economic activity does not fall sharply, high sticky inflation, coupled with inflationary pressures from tariffs, may keep the Fed on the sidelines for longer than the market expects. (Jinshi)