The Fed will spark an economic crash by delaying rate cuts, State Street equity research chief says

The economy is bound to enter a downturn if the Federal Reserve delays cutting interest rates, according to Marija Veitmane, the head of equity research at State Street Global Markets.

The Wall Street vet warned of an impending economic crash if the Fed doesn’t ease monetary policy soon. Higher interest rates are already taking a toll on economic strength, she noted, even if growth numbers looked fine last quarter.

“Delaying cuts has real economic impact. So even though for now we’re kind of staying on a level path, not cutting interest rates can create economic problems down the line,” Veitmane said to CNBC on Monday, predicting the economy would see a “no landing then a crash.”

“I think that’s a quite likely economic outlook in our opinion,” she warned.


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