Analyst: History shows that a recession often follows the Federal Reserve's interest rate cuts, investors should be prepared

Odaily reports that BCA Research's Chief Global Strategist, Peter Berezin, recently wrote an article suggesting investors should prepare for a potential recession in the U.S. economy as the Federal Reserve may not be able to save it and investor strategies will need to change accordingly. Peter Berezin pointed out that the Federal Reserve might not be able to rescue the economy. Previously, after this central bank began cutting interest rates in January 2001 and September 2007 respectively, the economy fell into recession within a few months. Currently, market expectations are for more than two percentage points of cuts by the Fed over the next 12 months. Unless the Fed is looser than already expected by markets or there is an economic downturn, long-term US bond yields will not significantly drop from current levels (Business Insider).