Fed's Hesitation on Rate Cuts Risks Economic Stability, Experts Warn Economists are sounding alarms that the Federal Reserve might be on the brink of repeating past mistakes, this time by delaying interest rate cuts, potentially ushering in a recession. After admitting to being tardy in raising rates amidst the inflation surge of 2021 and 2022, the Fed now faces criticism for possibly acting too sluggishly as inflation begins to subside. Mark Zandi, chief economist at Moody’s Analytics, warns of the increasing danger the longer the Fed hesitates to lower rates. With inflation gradually approaching the Fed’s 2% target and economic risks mounting, Zandi advocates for a reduction in rates as early as March or, at the very latest, May. « Previous Article Next Article » Share This Article Choose Your Platform: Facebook Twitter Google Plus Linkedin Related Posts Dimon Warns: US Economic Outlook Uncertain, Recession RiskLingers READ MORE S&P Global Survey Shows US Business Activity Picks Up in January as Inflation Cools READ MORE Concerns Arise Over CPI Data Accuracy with Response Rates Lagging READ MORE Main facts about the copper market as prices hit record highs READ MORE Add a Comment Cancel replyYour email address will not be published. Required fields are marked *Name * Email * Save my name, email, and website in this browser for the next time I comment. Comment