Wall Street Strategist: The Federal Reserve should not cut interest rates this week, otherwise it may trigger a market bubble
Wall Street strategist and President of research firm Yardeni Research, Ed Yardeni, stated that while it is widely expected that the Federal Reserve will cut interest rates by 25 basis points this week, this could be a bad idea. Although the market generally expects subsequent rate cuts to decrease, Yardeni pointed out that recent strong economic data coupled with continuous GDP growth and a robust labor market as well as stocks, gold and Bitcoin all hitting record highs indicate that continuing to cut rates may not be the best decision. He noted that inflation is still above the Fed's target of 2%. While the Fed hinted at possibly pausing its rate-cutting cycle in January next year, Yardeni believes this action might come too late.
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