The rise in the U.S. stock market will not be able to last long if the Fed does not start cutting rates, Business Insider quotes the opinion of Apollo chief economist Torsten Slok. The regulator's refusal to take this step this year would lead to the disappearance of the "sugar high" in the market, and the environment would become similar to 2022, which ended with a deep recession and a decline in the S&P by 18%, the expert believes.

At the same time, Slok does not think it is likely that the regulator will decide to cut rates this year. This is hindered by the positive results of the U.S. economy and the growth of consumer prices in many sectors.

Optimism about monetary easing is not helped by recent comments from Fed chief Jerome Powell, who said that it will take longer than expected to gain confidence in slowing inflation. The hawkish tone was echoed by Vice Chairman Philip Jefferson, who emphasized that if consumer prices are higher than expected, it is appropriate to keep rates at current levels.