Institution: The Fed's interest rate cut may have a delayed effect on the economy

Joe Brusuelas, an economist at RSM, an insurance, tax, and consulting firm, said the stimulating effect of this round of Fed rate cuts on the economy may be more limited than in the past. Since most homeowners previously locked in mortgage rates well below current levels, mortgage rates would need to fall significantly for refinancing to significantly improve household finances. Corporate balance sheets are already healthy, and the marginal effect of lower financing costs on incentivizing risk-taking is diminishing. Brusuelas also emphasized that, against the backdrop of tightening immigration policies, even companies interested in expansion may face difficulties recruiting workers: "These factors combined will result in a longer lag in the transmission of interest rate cuts to the real economy than historical experience." (Jinshi)