With the recent turmoil in U.S. financial markets and weak economic data, a key question has come to the mind of Michael Hartnett, chief strategist at Bank of America.

Hartnett, known as the most accurate analyst on Wall Street, wrote in his latest Flow Show notes that because "long-term high real interest rates are slowly and profoundly damaging U.S. consumers and labor markets," global interest rate cuts are no longer a question of "if" or "when", but a question of "whether the interest rate cuts are effective."