Institution: The Federal Reserve's interest rate cuts may have a delayed stimulative effect on the economy

Jinse Finance reported that Joe Brusuelas, an economist at insurance, tax, and consulting firm RSM, stated that the current round of Federal Reserve interest rate cuts may have a more limited stimulative effect on the economy compared to previous cycles. Since most homeowners have previously locked in mortgage rates that are much lower than current levels, mortgage rates would need to fall significantly further for refinancing to meaningfully improve household financial conditions. Corporate balance sheets are already in healthy condition, and the marginal effect of lower financing costs in encouraging companies to take on risk is diminishing. Brusuelas also emphasized that, against the backdrop of tightening immigration policies, companies may face hiring difficulties even if they intend to expand: "These factors together mean that the transmission of rate cuts to the real economy is taking longer than historical experience." (Golden Ten Data)