Citigroup economists: The Federal Reserve's concerns about the economy potentially softening more quickly may accelerate interest rate cuts

ChainCatcher news, according to Jinshi reports, in the year since the Federal Reserve raised interest rates to a 20-year high, it has successfully cooled down the overheating U.S. economy. However, the higher borrowing costs have also produced some unexpected effects. High-income households are benefiting from rising stock and housing prices. Businesses are borrowing quickly, and consumers continue to spend. But in other respects, a year of high interest rates has finally begun to cause losses. Americans are taking longer to find jobs, and the unemployment rate has risen. Small businesses are feeling the pain of rising loan costs. Low-income households are falling behind on auto loans and credit cards.

Citigroup economist Veronica Clark said, "The economy has softened in recent months, and Federal Reserve officials will be very concerned about whether the economy is starting to soften more quickly. This will lead officials to cut interest rates more quickly."