PANews reported on September 17 that Seema Shah, chief global strategist at Principal 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. She analyzed: "Since the late 1980s, a 25 basis point cut has become the norm, and a 50 basis point cut is the exception." Only two interest rate cut cycles started with a margin of more than 25 basis points, in January 2001 during the Internet bubble and in September 2007 during the subprime mortgage crisis. Both periods were prominent, characterized by concerns about severe asset price bubbles and financial systemic risks.
Xinan Asset Management Report: History shows that the Fed is more likely to cut interest rates by 25 basis points
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