Most expect the Federal Reserve to cut rates at its September meeting. However, Moody's Analytics Chief Economist Mark Zandi believes the Fed should have cut "months ago."

Zandi believes that there is currently a "1 in 3" chance of a recession starting at some point over the next year. He follows that up, affirming why the Fed needs to cut rates soon: "The so-called unconditional probability of recession is about half that, about 15%. You get recessions typically once every 6 or 7 years. So one-third probability is on the high side and it will continue to rise until the Federal Reserve actually starts to cut interest rates."

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This post was written by Nicholas Jacobino & Stephanie Mikulich.