According to Mars Finance, Steven Wieting, chief economist, chief investment strategist and interim chief investment officer of Citi Wealth Management, believes that the most likely outcome of the Federal Reserve's interest rate decision this week is a 25 basis point rate cut, but he stressed that no one knows exactly what the Fed will do.
Wieting noted that the Fed's rate-cutting history shows that the central bank will cut rates by 25 basis points when simply adjusting monetary policy to current economic conditions, and will typically make larger rate cuts when the economy is on the brink of recession.
