Rate cuts by the Federal Reserve may not be the boon investors are hoping for. That's because the Fed is only likely to ease monetary policy when the economy is slammed with a recession and the market is flailing, according to famous " Black Swan" investor Mark Spitznagel . In a recent interview with Reuters , the Universa Investments CIO cast a stark warning about stocks and the economy. According to the CME FedWatch tool, investors are expecting one to two cuts to come in 2024, which are expected to be bullish for stocks. But the only way the Fed will cut rates is if central bankers see a significant weakening in the economy meaning the US could see a downturn and a market plunge before interest rates come down, Spitznagel warned.
Business Insider
Business Insider