Xinan Asset Management: History shows that the Fed is more likely to cut interest rates by 25 basis points

Odaily Odaily News: Sima Shah, chief global strategist at Xinan Asset Management, said in a report that while some may think the Fed will cut interest rates by 50 basis points this week, history shows that a 25 basis point cut is more likely. "Since the late 1980s... 25 basis point cuts have become the norm, and 50 basis points are the exception." She said that only two rate cut cycles started with a margin of more than 25 basis points: during the Internet bubble in January 2001, and during the subprime mortgage crisis in September 2007. Both periods were prominent, characterized by concerns about severe asset price bubbles and financial systemic risks. (Jinshi)