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phoenix finance news: the 6th bund financial summit "coping with a changing world" was held in shanghai from september 5 to 7. the summit was co-hosted by the china finance 40 forum (cf40) and the china center for international economic exchanges (cciee). phoenix finance reported the entire event.

on september 6, former federal reserve vice chairman donald cohn had an open exchange with reporters on current hot issues in the u.s. economy after the bund roundtable meeting. he expressed his views on the issues of the federal reserve's interest rate cut and the continued rise in u.s. debt, which are of greatest concern to all parties.

donald cohn, former vice chairman of the federal reserve and senior fellow at the brookings institution

regarding whether the federal reserve will announce a rate cut at the upcoming interest rate meeting this month, cohn believes that a rate cut is necessary. he said that if the federal reserve does not cut interest rates amid a slowing economy and a weak labor market, the united states may face a recession. "now, i can't say that a recession is impossible. obviously, if the economy continues to be weak, the growth rate slows, people lose confidence and increase savings, and domestic demand weakens, these will drive us into a recession," he said. cohn predicted that the federal reserve is very likely to cut interest rates this month, most likely by 25 basis points.

regarding how to solve the high debt problem currently facing the united states, cohen first joked: "i think the solution is to reduce spending and increase taxes." then he seriously explained that the social characteristics of the united states and the aging of the population have led more people to call on the government to provide social security, medical services and other support. therefore, the demand for government spending is indeed increasing.

"the fact that debt is rising relative to income is worrisome, but there is no bipartisan commitment to addressing it." cohn believes the most likely way to change this is if financial markets react, for example if bond yields start to rise because of concerns about the impact on inflation or whether american taxpayers are willing to take on the risk of debt. that might get the attention of politicians, but there is no real plan to address this worrisome trend.