Analysis: Fed rate cuts can reduce recession likelihood, but they can't go to zero

American economist Steven Blit said that if the Federal Reserve does not take action early, people will look for signs that the economy is heading towards a recession instead of looking for indicators of a recession itself.The continuous appearance of weak data is not a major crime against growth, but it can cause problems. If the Federal Reserve stalls or waits for data to push, they will repeat the same mistakes, and the possibility of entering a recession later this year will rise to 75%. Given the expected signal from the Federal Reserve to cut interest rates by 50 basis points in September, the actual likelihood is even lower. By the end of the year, they may cut interest rates by 100 basis points. If the Federal Reserve takes action, the possibility of a recession will be lower, but not zero.