Investment and retirement giant Vanguard has been taking a contrarian view of the economy and what is likely necessary to happen. One of those views is that the Federal Reserve might not have the room to make the significant interest rate cuts that so many have suggested are necessary.

Many have thought — exactly the opposite. That higher interest rates were absolutely unnecessary at this point. Much of the faction has been interested in lower interest rates to make more money. Understandable if not necessarily the most solid foundation for monetary theory.

But for the Fed, the question has been more complex. It has tried to guide the economy from higher inflation to a soft landing and is looking for continued economic growth, a reasonably strong labor market, and no recession. That creates two potential dangers. One is to cut rates too soon, allowing a resurgence of inflation and having to start the entire process of correction over again. The other is to cut rates too late and watch the economy tip over into a recession as growth becomes too constrained.