The Federal Reserve's interest rate cuts may trigger the risk of stagflation, facing a dilemma in decision-making

ChainCatcher news, according to Jinshi reports, Minsheng Macro Research states that the Federal Reserve's interest rate cuts are the beginning of the problem, not the end. An increase in the magnitude of rate cuts may trigger inflation risks, while insufficient rate cuts could lead to political risks. The dot plot suggests a 75 basis point cut within the year, an increase of 25 basis points from June. In the future, factors such as a cooling labor market and sticky inflation will complicate the Federal Reserve's decision-making, and the market may price in more rate cuts.