Asset management giant Guggenheim: Economic slowdown will prompt the Federal Reserve to cut interest rates in December

BlockBeats News, November 14, Anne Walsh, Chief Investment Officer of Guggenheim Partners Investment Management, which manages $357 billion in assets, stated that given increasing evidence that parts of the economy are slowing down, the Federal Reserve may cut interest rates again in December.

Walsh said the company is closely monitoring the "polarized economy"—low-income consumers and small businesses seem to be struggling, while wealthy individuals and large corporations are thriving. "This has created a two-speed economy, and the Beige Book truly reflects the overall state of the economy, which is indeed becoming increasingly weak." These signs of weakness may prompt the Federal Reserve to adopt a lower neutral interest rate (perhaps around 3%) and further rate cuts. "We will also see more rate cuts in 2026."