[Former Fed economist Sam: The Fed should cut interest rates by 50 basis points] Golden Finance reported that Claudia Sahm, former Fed economist and chief economist of New Century Consultants, said in an interview last Friday: "Since the last Fed meeting, we have had two months of good inflation data, which is what the Fed requires." However, the question now is how big a move the Fed should take. The financial market, as a compass for the direction of the central bank, has not been helpful in this regard. According to CME's Fed Watch tool, the futures market focused on a 25 basis point interest rate cut for most of last week, but on Friday, traders turned to the almost equal possibility of a 25 or 50 basis point cut. Sahm is one of those who think the Fed should take bigger action. She said: "The inflation data alone is enough for us to cut 25 basis points next week, and there will be a series of rate cuts after that." She believes that the federal funds rate is already over 5% and has been fighting inflation for more than a year. “The battle has been won, and they need to start cutting rates,” she said. That means a 50 basis point cut from the outset as a way to head off a potential labor market recession. “The labor market has softened since last July, so part of this is a recalibration. We’re getting more information. Fed officials need to make this 50 basis point cut and be ready to go further.”