Contrarian View: Fed Rate Cuts Could Reignite Animal Spirits, Complicating Inflation Fight
• Contrarian view challenges investor optimism over Fed's ability to curb inflation without recession • Fed's dovish pivot may reawaken "animal spirits," fueling consumption and complicating inflation fight • Easing financial conditions could require Fed to restart tightening, despite projected rate cuts • Resurgence of "animal spirits" in markets is top risk from Fed's policy update, greenlighting cuts • Skeptics doubt perfect economic landing; mid-caps could outperform if high inflation persists