Rockefeller Chairman warns: Even if the economy struggles, don't expect the Federal Reserve to rush to bail out the market

Gelonghui, April 13 | Rockefeller Capital Management Chairman and renowned investor Ruchir Sharma stated that even if the U.S. economy faces difficulties, do not expect the Federal Reserve to rush in to rescue the market. Sharma believes that the Federal Reserve is clearly unable to cut interest rates to stimulate economic growth, because although high oil prices are threatening growth prospects, inflation has exceeded its 2% target for 60 consecutive months, leaving the Fed with almost no room to ease monetary policy. He pointed out that the Fed's current monetary policy stance is very different from a few years ago. Looking back at the pandemic period, the Fed aggressively cut rates to support the economy—this so-called “Fed put” market backstop mechanism may no longer exist.