Wall Street's outlook on Fed rate cuts is setting the stage for a "lose-lose situation," says Deutsche Bank macroeconomic strategist Henry Allen. Indeed, the last four times we've seen rate cuts that fast, it's been because of the most recent four U.S. recessions," he wrote. To be sure, rapid rate cuts without a preceding recession isn't an impossible scenario, but that doesn't mean it's likely either, Allen noted. Paul Volcker's chairmanship of the Fed in the 1980s, for example, saw steep rate cuts, although that followed a period of extremely restrictive monetary policy. "[It's] hard to see how both rate markets and risk markets can both continue to thrive as they have recently," Stanley said.

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Persons: Henry Allen, Allen, Paul Volcker's, Allen isn't, Stephen Stanley, Stanley, Stocks, Deutsche Bank's Allen Organizations: Deutsche Bank, Markets, Federal, Traders, Santander U.S, Deutsche Locations: U.S, Vietnam