Golden Finance reported that Dudley, former chairman of the New York Fed, said that two weeks ago, he turned from a hawk to a dove, abandoning his support for further interest rate hikes by the Fed and advocating an immediate rate cut to avoid a recession. In the past two weeks, there has been more evidence of a weakening U.S. labor market and further slowing inflation. After that, the longer the Fed waits, the greater the potential damage. Fed members' estimates of the neutral interest rate range between 2.4% and 3.8%, which means that the current effective federal funds rate of 5.3% is still a long way from the neutral level. Once a recession becomes a reality, the Fed will need to cut interest rates to 3% or lower. It is expected that the Fed may cut interest rates by 25 or 50 basis points at the September meeting.