Wall Street veteran strategist: Inflation will not disappear, and the Fed is not expected to make significant rate cuts

ChainCatcher news, Brian, the long-term strategist and head of Wind Shift Capital Advisors, stated that he expects the stock market to experience turbulence over the next 12 months. This is because the Federal Reserve is unlikely to lower interest rates to very low levels as the market believes; borrowing costs may indeed rise from now on. This could suppress lending, slow down investment, and cause U.S. and global stock markets to decline by 7%-12%.

"I think the crisis we face is that when interest rates start to rise, the government will not be able to continue to boost the economy in a rising interest rate environment because they have already lost the support of the market," Brian said.

Brian's prediction may seem counterintuitive for investors who have been pricing in significant rate cuts by the Federal Reserve. However, he stated that the U.S. economy faces too much inflationary pressure in the medium term to guarantee that the Federal Reserve will adopt aggressive easing policies. (Jin Shi)