Potential Fed Rate Cuts, Policy-Driven Investments Raise Bubble Concerns

‘The situation today is surprisingly similar to the IT bubble in the 1990s,’ said one economist. Some believe the potential bubble is far from bursting.

A man looks at a computer screen in Irvine, Calif., on April 9, 2021. John Fredricks/The Epoch Times

With the Federal Reserve signaling upcoming interest rate cuts and both the White House and private sector ramping up investment in strategic areas, concerns over a potential asset bubble are gaining traction among economists and market analysts.

Wall Street has shrugged off numerous headwinds since the trade-driven selloff in April. U.S. stocks continue to register fresh all-time highs amid higher tariffs, cooling employment conditions, sticky inflation, and volatile geopolitics.