JPMorgan, Goldman Sachs analysts split on how much the Fed will cut next week

PANews reported on September 15 that according to Jinshi, analysts have different views on the extent of the Fed's interest rate cut next week. Walter Todd, chief investment officer of Greenwood Capital, said that the Fed should choose to cut interest rates by 50 basis points on Wednesday, and pointed out that the gap between the 2-year US Treasury yield (which has been around 3.6%) and the federal funds rate (5.25%-5.5%) is "a signal that the Fed started the interest rate cut cycle late and needs to catch up." JPMorgan Chase also once again called on the Fed to cut interest rates by 50 basis points next week "to adapt to the change in the balance of risks." However, Goldman Sachs still believes that the Fed will ease by 25 basis points next week and at each of its remaining meetings this year. In the camp that supports the Fed's moderate interest rate cut, they generally worry that a 50 basis point interest rate cut may risk the resurgence of inflation, while it may send a signal of poor economic conditions, thereby triggering panic on Wall Street.