Institution: The Federal Reserve should cut interest rates as soon as possible to avoid falling behind the situation

ChainCatcher news, MainSky Asset Management Chairman Eckhard Schulte stated that U.S. interest rates remain very restrictive, and he believes the Federal Reserve may not keep up with the situation. "The Federal Reserve should cut interest rates as soon as possible."

He noted that although tariffs may lead to rising inflation, this will be a one-time impact. The Federal Reserve may not cut rates in June. "However, this brings a risk that due to its overreaction, it will fall behind the curve." This potential policy misstep represents the highest risk of a recession in the current U.S. economy. The current money market is pricing in a 25 basis point rate cut by the Federal Reserve in September.