Analysts warn: The Federal Reserve may not cut interest rates this year, US stocks may plummet

Zhitong
2024.06.11 07:05
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American analysts predict that the Federal Reserve may not cut interest rates this year, which could lead to a sharp decline in the US stock market. Some analysts even believe that the Federal Reserve will not cut interest rates at all this year. The market's diminished expectations for rate cuts have increased the likelihood of the Federal Reserve maintaining interest rates in July. If rates do not fall, inflation issues will persist, US Treasury yields will remain high, and the S&P 500 index could fall by 8.5% to 4900 points. Furthermore, some suggest that the Federal Reserve should keep rates unchanged until 2024 to avoid the risk of a stock market bubble burst. However, others argue that the longer rates remain high, the greater the risk of an economic collapse