Analysis: The Fed may cut interest rates by 50 to 75 basis points this year, but a large cut is unlikely

Odaily Odaily News According to China News Weekly, recently, the market expects that the Federal Reserve will cut interest rates soon, which is a high probability event. The reason is that the risk balance between inflation and unemployment in the United States has undergone subtle changes, with unemployment risk rising and inflation risk falling, and unemployment risk has begun to exceed inflation risk. The Federal Reserve's preventive interest rate cuts will help reduce the market's expectations of a rapid deterioration in the US economic recession, which may be beneficial to the stability of global financial markets and the repair of the world economy, but preventive interest rate cuts also constrain the adjustment space of monetary policies in other economies. It should be noted that given the current economic and financial status of the United States, it is unlikely that the Federal Reserve will cut interest rates significantly this year, and the cumulative interest rate cuts this year may be 50-75 basis points.