Sam, a former Fed economist, believes that
Since the last Fed meeting,
there have been two months of good inflation data, which meets the Fed's requirements,
but the Fed should cut interest rates by 50 basis points to prevent a recession in the labor market.
How much action the Fed should take is in doubt, and the financial market has not given clear guidance.
The futures market focused on a 25 basis point interest rate cut last week, and on Friday traders turned to the possibility of a 25 or 50 basis point cut.
Sam thinks the Fed should take bigger action, and should cut interest rates by 25 basis points next week based on inflation data alone, and there will be a series of interest rate cuts afterwards.
She believes that the battle has been won and interest rate cuts should be started, and a 50 basis point cut should be started to prevent a potential labor market recession.
Since the labor market has been weak since July last year and needs to be recalibrated, Fed officials should cut interest rates by 50 basis points and be prepared for further action.
