Jin10 data reported on May 8, Northlight Asset Management Chief Investment Officer Chris Zaccarelli stated that The Federal Reserve (FED) is in a dilemma, with concerns about inflation and economic recession pulling them in two directions. Because of this, The Federal Reserve (FED) will have to wait until the unemployment rate skyrockets before it can resume rate cuts, but by then it may be too late. The market will increasingly worry about an economic recession, and unless some trade protocol is reached before the tariff pause ends, we will see the market fall again, just like in early April.
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Institution: The Federal Reserve may be too late to cut interest rates after the unemployment rate soars.
Jin10 data reported on May 8, Northlight Asset Management Chief Investment Officer Chris Zaccarelli stated that The Federal Reserve (FED) is in a dilemma, with concerns about inflation and economic recession pulling them in two directions. Because of this, The Federal Reserve (FED) will have to wait until the unemployment rate skyrockets before it can resume rate cuts, but by then it may be too late. The market will increasingly worry about an economic recession, and unless some trade protocol is reached before the tariff pause ends, we will see the market fall again, just like in early April.