“This isn’t an interest rate problem,” he said. “People are going to stay home because they’re afraid of getting sick” no matter how low rates are.
Stanley, who expects the Fed to reduce rates by a half point next week, also sees downsides from the central bank moving too aggressively: It risks fueling the feeling among investors that it is running out of ammo.
“The closer they move to zero, the more intense that feeling becomes,” he said.
--With assistance from Sophie Caronello.
This article was provided by Bloomberg News.