Trillion-dollar asset management giant: Even if the Federal Reserve cuts interest rates by 100 basis points, interest rates still remain tight!

The Federal Reserve's interest rate policy is under scrutiny, with even a 100 basis point rate cut still indicating a tight policy. Joyce Chang, Managing Director of Research at Morgan Stanley, believes that the Federal Reserve will cut the benchmark interest rate before the end of the year, reflecting concerns about inflation and employment. PGIM economist Tom Porcelli pointed out that the current 5.3% federal funds rate is relatively high, and a rate cut would still leave the policy on the tight side. In addition, while some companies are showing that consumers are more cautious, others like Walmart indicate that consumer willingness to spend remains strong