I think Morgan Stanley is predicting the Fed will cut rates two more times by year end. Taking rates to near zero.
What worries me is that what will the Fed be able to do when we really do go into recession with interest rates already near zero?
Reducing rates with record high debt (US gov’t, corporations, students, consumers WORLDWIDE, Mortgages on inflated housing prices, etc is same as pouring gasoline on fire. It will encourage people to buy more and inflate the debt balloon bigger.