Wall Street strategist: Fed should not cut rates this week or it could spark a market bubble
Ed Yardeni, Wall Street strategist and president of research firm Yardeni Research, said that it may not be a good idea for the Fed to cut interest rates by 25 basis points this week, as widely expected by the market. Although it is widely expected that the magnitude of subsequent rate cuts will decrease, Yardeni said that recent economic data is strong, coupled with continuous GDP growth, a stable labor market, and stocks, gold, and bitcoin all hitting historic highs, indicating that continuing to cut interest rates may not be the best decision.
He pointed out that the inflation rate is still above the Fed's target of 2%. Although the Fed hinted that it may pause the rate cut cycle in January next year, Yardeni believes that this action may come too late.
