Moody’s Analytics Says Risk Warnings Are Intensifying and Recommends That the Federal Reserve Keep Rates Unchanged
BIBIBI
AT A GLANCE
The chief economist at Moody’s Analytics said the Federal Reserve should not raise rates again this week and that economic risks are rising.
Article
Moody’s Analytics: Risk Warnings Intensify; the Federal Reserve Should Keep Rates Unchanged
BlockBeats reports,October 27, Mark Zandi, chief economist at Moody’s Analytics, said that the Federal Reserve will not raise rates again when it meets this week, nor should it. The U.S. economy is facing an increasing number of threats, and the Federal Reserve’s mistakes are one of them.
This is the clear message conveyed by Moody’s “risk matrix.” The matrix measures risks by assessing the likelihood that each risk will occur over the next 12 to 18 months and the extent of economic damage it could cause if it occurs. The matrix contains a large number of red alerts, indicating that risks are becoming more likely or more severe. (Jinshi)
Original link https://m.theblockbeats.info/flash/373867
Key points
01
Moody’s Analytics Chief Economist Mark Zandi said the Federal Reserve will not raise rates again this week, nor should it.
02
Mark Zandi said the U.S. economy is facing an increasing number of threats.
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Moody’s risk matrix assesses the likelihood of risks occurring over the next 12 to 18 months and their potential economic damage.
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The risk matrix contains a large number of red alerts, indicating that risks are becoming more likely or more severe.
AI-assisted interpretation
The following is analysis, separate from reported facts. Verify important claims independently.
This is an economist’s assessment of interest-rate policy and economic risks, not a formal decision already made by the Federal Reserve. The red alerts in the risk matrix indicate that the assessment of the relevant risks is rising.
Why it matters to readers
Whether the Federal Reserve keeps rates unchanged will affect market expectations regarding the future interest-rate path; at the same time, rising economic risks may offset the relief provided by unchanged rates.
Interest-rate decisions affect borrowing costs and market expectations; however, this message presents only an expert opinion and cannot be equated with the Federal Reserve’s final decision.
Risks and unknowns
The evidence does not state the formal decision of the Federal Reserve’s meeting this week.
The evidence does not list the specific risks included in the risk matrix.
The evidence does not specify the precise probabilities or economic-damage figures corresponding to the red alerts.
The evidence comes from a news paraphrase, and the relevant assessment still needs to be verified against the Federal Reserve’s official statement or rate decision.
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