Apollo: The Fed's promise to cut rates could make it harder to deliver

Odaily Odaily News: Although some Fed officials have tried to keep the possibility of another rate hike open, the main message from the Fed is that the next step will be a rate cut. But Apollo analyst Torsten Slok said in a report that the more dovish the Fed's voice, the looser financial conditions will be, and the harder it will be for the Fed to cut interest rates. He called it the "Fed's reflexive paradox of rate cuts." Slok said that since the Federal Open Market Committee began talking about rate cuts in November last year, U.S. stocks have rebounded and "the household sector has also received unexpected gains." He said government spending also provided "an important boost to the economy." (Jinshi)