The Fed likely won't cut rates until after a recession strikes, research firm says

• The Fed likely won't cut interest rates until after a recession arrives, according to GlobalData TS Lombard.
• The research firm said Fed Chair Powell is likely to fall into the trap of being reactionary when it comes to rate decisions.
• "By not cutting now, pre-emptive is off the table," chief US economist Steven Blitz said.

The Federal Reserve is making a big mistake by not cutting interest rates right now, according to GlobalData TS Lombard chief US economist Steven Blitz.

By waiting to loosen monetary policy, Fed chairman Jerome Powell is falling into the trap of being reactionary rather than anticipatory when it comes to interest rate decisions.