MainSky Asset Management Chairman: The Federal Reserve may fall behind the situation and needs to cut rates as soon as possible.

According to ChainCatcher, MainSky Asset Management Chairman Eckhard Schulte stated that U.S. interest rates remain restrictive, and the Federal Reserve should cut rates as soon as possible. He believes that tariffs may lead to a one-time inflation impact.

Schulte pointed out that the Federal Reserve may not cut rates in June, but this brings risks, as its overreaction could lead to falling behind the curve. This policy error is the highest risk for a recession in the U.S. Currently, the money market is pricing in a 25 basis point rate cut by the Federal Reserve in September.