Policy mistake already made? Analysts urge the Fed not to "sleepwalk" and cut interest rates early

Despite Amundi Asset Management predicting a soft landing for the US economy, analyst Kenneth Akintewe believes that the US economy still faces long-term slowdown risks in 2025. He questions whether the Fed's policies are flawed, mentioning that recent revisions to non-farm payroll data indicate economic weakness. He points out that the Fed needs to timely ease monetary policy, and that policy changes take time to show effects. Recent data supports the possibility of a slight rate cut, with the market believing there is close to a 70% probability of a 25 basis point cut this month