Roubini Warns Wall Street on Fed Rate Cut Expectations Amid Trade Tensions

According to BlockBeats, renowned economist Nouriel Roubini, known as "Dr. Doom" for his accurate prediction of the global financial crisis, has issued a warning to Wall Street. He advises traders to reduce their bets on the Federal Reserve increasing rate cuts to mitigate the impact of the trade war initiated by U.S. President Donald Trump. Roubini believes that the United States will avoid a recession and that the Federal Reserve will maintain interest rates for the remainder of the year as tariff-related policy disputes ease. He described the situation as a "standoff between Trump's bottom line and Powell's," suggesting that Federal Reserve Chair Jerome Powell will wait for Trump to make the first move. Last week, Powell indicated that the economic impact of new tariffs could exceed expectations, and the central bank must ensure this does not lead to worsening inflation. This week, traders have been considering the possibility of the Federal Reserve cutting rates three to five times, each by 25 basis points, with some on Wall Street even speculating that the central bank might make an emergency rate cut before the next meeting.