Mayra Rodriguez Valladares, managing principal at MRV Associates, said, “There is a good chance that the Fed will pause in rate cuts.”

“To cut rates would be a mistake,” she said. “This extraordinary decade of such low interest rates has led to a perverse incentive for company executives and private equity firms to have record levels of debt, both in bonds and loans. The rising amount of below investment grade bonds and loans could significantly amplify the effects of a recession.”