Some traditional market analysts, however, seem to be pricing in rate cuts by the Fed coming early next year, ostensibly as part of a future move to stop the U.S. economy from a deeper recession. Those analysts might be thinking the economy is too weak to handle higher rates, or they doubt the Fed’s resolve to maintain tight financial conditions if markets continue to swoon, or some combination.
Rate Hike at Fed’s July Meeting Provides a Credibility Test, With Cuts Already on Horizon
