ChainCatcher news, many Wall Street analysts still expect the Fed's first step in cutting interest rates to be more cautious. "I hope they cut by 50 basis points, but I guess they will cut by 25 basis points." Moody's Analytics Chief Economist Mark Zandi said. "They have completed the task of full employment and inflation return to target, and the fund rate of around 5.5% is too high. Therefore, I think they need to normalize interest rates quickly, and there is a lot of room to do so.
"Tightening policies, while they appear to be working, have not worked exactly as they thought, so easing policies should be viewed as equally uncertain," said Tom Simons, U.S. economist at Jefferies. "So if you're not sure, you shouldn't rush." "I guess they disagree," said Kaplan, former president of the Dallas Fed. "There are also some members who just want to be more careful from a risk management perspective." Seema Shah, an analyst at Principal Asset Management, said that for the Fed, it comes down to deciding which risk is greater - if it cuts rates by 50 basis points, it will reignite inflationary pressures, and if it only cuts rates by 25 basis points, it may lead to a recession. Criticized for being too slow to respond to the inflation crisis, the Fed may take a reactive approach to the risk of a recession rather than a proactive one. (Jin Shi)
