Opinion: Aggressive Rate Cuts Could Damage the Fed’s Reputation, This Meeting Expected to Reiterate Patience

According to ChainCatcher, Benoit Anne, Managing Director at MFS Investment Management, stated that the Federal Reserve is currently in a lagging position. "We all believe there will be more rate cuts in the future, but the exact timing remains unclear," he said.

He pointed out that ongoing debates over political intervention and the Fed's independence are causing significant disruptions to the decision-making environment. He warned, "If the Federal Reserve were to take aggressive rate-cutting measures in the coming months, it could pose certain reputational risks." In light of this, he expects the Fed to place particular emphasis on its "patient" stance at the FOMC meeting and to reiterate a cautious approach to decision-making.