Analyst: US economy does not need rate cuts

Odaily News Investors expect the Federal Reserve not to cut interest rates until September after a solid jobs report was released last Friday. Piper Sandler analyst Nancy Lazar wrote that although the U.S. economy may weaken, it will maintain its growth momentum even if the Fed does not cut interest rates. For one thing, the Fed's rate cuts last year may not have fully taken effect, given the typical lag effect. On the other hand, reducing the size of the federal government will free up labor for the private sector. Our basic forecast is that the U.S. economy does not need more rate cuts. The current weakness is the effect of the roller coaster tariff policy. (Jinshi)