Posted 3/4/2024, 3:10:00 PM
Roubini Warns Strong Growth Could Limit Fed Rate Cuts, Sparking Market Correction
- Nouriel Roubini ("Dr. Doom") worries the economy may run too hot in a "no landing" scenario where growth keeps reaccelerating
- He says if strong growth means the Fed doesn't cut rates as much as expected, it could be bad news for markets
- Roubini points to 2018 when Fed hawkishness led to a 10% equity correction as an example of this risk
- Rate cut expectations have moderated recently from 6-8 cuts to only 3 cuts
- The Fed withdrawing expected rate cuts due to strong growth poses serious downside risk for markets currently