In the event of a recession, the Fed could begin a series of rapid rate cuts in June

BlockBeats News, on March 11, institutional analysis noted that the Federal Reserve will not lower interest rates at next week's policy meeting, but could begin a series of rapid rate cuts in June if recession fears caused by the trade war intensify and come true. In the futures market, at least, there are growing contracts betting that the Fed will deliver a 25bp rate cut in June, July and October, a trend that follows US President Donald Trump's comments about a "transition period" over the weekend as he imposed tariffs on a number of countries. U.S. equities and Treasury yields also fell on Monday on fears that his comments portended an impending recession. "Despite what may seem calm on the surface, if either labor or financial markets start to slide before the Fed has time to assess the tariffs and the impact of the Trump agenda as a whole on inflation, [Fed policymakers] are increasingly concerned about the rising risks of dual mandates and the ability to withstand pressure from US President Trump to cut interest rates," Tim Duy, chief U.S. economist at SGH Macro Advisors, wrote in a note. A sluggish Fed will incur the wrath of the Trump administration." (Golden Ten)