Opinion: Aggressive Rate Cut Could Damage Fed's Credibility, This Meeting Expected to Reaffirm Patience

BlockBeats News, July 30th, Benoit Anne, Managing Director of MFS Investment Management, stated that the Federal Reserve is currently in a lagging position. "We all believe there will be more rate cuts in the future, but it is not yet clear when exactly they will start," he said. He pointed out that the ongoing controversy surrounding political intervention and the Fed's independence has brought serious disruptions to the decision-making environment. He warned that "if the Fed were to abruptly take aggressive rate-cutting measures in the coming months, it could pose a certain reputational risk." In light of this, it is expected that the Fed will emphasize its "patience" stance at the FOMC meeting and reaffirm its cautious decision-making approach. (FXStreet)