MainSky Asset Management Chairman: The Federal Reserve should accelerate the pace of interest rate cuts to avoid policy lag.

According to Gate News bot, MainSky Asset Management Chairman Eckhard Schulte pointed out that the current interest rate in the United States remains at a highly restrictive level, and the Federal Reserve may fall behind the development of the economic situation. He emphasized that “the Federal Reserve should cut interest rates as soon as possible.”

Schulte believes that although tariffs may trigger a rise in inflation, this impact is one-time only. He expects that the Federal Reserve (FED) will not take any interest rate cuts in June. “However, this overreaction may cause policies to lag behind the economic curve.” He stated that this potential policy misstep constitutes the biggest risk to the current U.S. economic recession. Currently, the money market expects the Federal Reserve (FED) to cut interest rates by 25 basis points in September.