According to BlockBeats, on September 22, EY Chief Economist Gregory Daco criticized the Federal Reserve for being reactive rather than proactive in its approach to rate cuts. Daco highlighted concerns that the Fed might be waiting too long to take action, especially after data released two days following the July meeting showed an increase in the unemployment rate to 4.3%. He emphasized the need for the Fed to adopt a robust forward-looking framework instead of relying on data-driven decisions, which he believes they have yet to achieve.

Daco also pointed out a discrepancy between Wall Street's expectations and the Fed's projections regarding future rate cuts. While Wall Street anticipates more rate cuts, Fed policymakers estimate two more 25 basis point cuts by the end of 2024 and four additional cuts in 2025. The Fed's rate-setting committee is nearly evenly split on the expected number of additional rate cuts this year, with seven policymakers supporting a 25 basis point cut by year-end and nine members favoring an additional 50 basis point cut. Two policymakers do not foresee any further cuts. This division suggests that while some officials might support a 25 basis point cut this month, others might opt for a 50 basis point cut to prevent further deterioration in the job market.