Bloomberg
- The first rate cut could come in May as a response to distress in commercial real estate, Komal Sri-Kumar said.
- The economist said the Fed should act soon to avoid a "tsunami" that's coming from the sector.
- He argued that turmoil at US regional banks is not idiosyncratic and poses a systemic threat.
Inflation is on its way back to the Federal Reserve's target, with markets even getting another encouraging revision on Friday. Yet, nearing mission-accomplished on inflation won't be the reason the central bank cuts rates, according to one top economist.
Instead, Komal Sri-Kumar, president of Sri-Kumar Global Strategies, says that the ongoing commercial real estate crisis will force the Fed to cut rates as early as May.