Many Wall Street analysts expect the Fed to be cautious in its first rate cut
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 interest rates by 50 basis points, but I guess they will cut interest rates by 25 basis points." Mark Zandi, chief economist at Moody's Analytics, 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.
"Though tightening policies seem to be effective, they are not working exactly as they imagined, so easing policies should be seen as equally uncertain," said Tom Simons, a US economist at Jefferies. "So if you are not sure, you should not rush." Kaplan, former president of the Dallas Fed, said: "I guess they disagree." "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 the interest rate cut is 50 basis points, it will reignite inflationary pressures, and if the interest rate cut is only 25 basis points, it may cause a recession. Criticized for responding too slowly to the inflation crisis, the Fed may take a reactive rather than proactive attitude to the risk of a recession. $BTC $ETH $BNB
