Former U.S. Treasury Secretary: The Federal Reserve may ultimately not significantly cut interest rates, and the possibility of not cutting rates may have risen to over 15%

ChainCatcher News, former U.S. Treasury Secretary Summers stated that the Federal Reserve's monetary policy is not as tight as investors might think, making it easier for the market to enter bubble territory. In an interview with Bloomberg last Saturday, Summers mentioned that the U.S. economy remains strong, with good employment conditions and resilient economic growth. This surprised some Wall Street giants like JPMorgan CEO Dimon and Bridgewater founder Dalio, who had previously predicted that the economy would fall into recession as the Federal Reserve began its fight against inflation. However, Summers pointed out that a strong U.S. economy could actually be bad news for U.S. stocks, as it suggests that the Federal Reserve's monetary policy is not as tight as the market believes. Summers warned that the likelihood of the Federal Reserve not cutting interest rates in 2024 may have slightly increased to over 15%, which is bearish for U.S. stocks. (Jin Ten)