April 23, 2024
Economy

A ‘No-Landing’ US Economy Will Get the Rate Cuts Markets Crave


Recent speeches by Federal Reserve officials make clear that the central bank wants to cut interest rates this year. Chair Powell practically promised those cuts, calling them “likely.” For stock bulls, that’s good news. It will take a no-landing economy and super-charge it with wealth effects. But it also means a bubble is now almost a base case.

Have you ever stood on a train platform as a freight train whizzed by at top speed? The power is a sight to behold — a seemingly unstoppable force. Of course, freight trains do stop. They stop and unload their cargo all the time, just not suddenly. With all that power, all that momentum, a sudden halt could derail it spectacularly.



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