According to BlockBeats, on September 16, Claudia Sahm, former Federal Reserve economist and chief economist of New Century Consultants, said in an interview last Friday: "Since the last Federal Reserve meeting, we have had two months of good inflation data, which is what the Fed wants. However, the question now is how much action the Fed should take. The financial market, as a compass for the direction of the central bank, has not provided any help in this regard. According to CME's Fed Watch tool, the futures market focused on a 25 basis point rate cut for most of last week, but on Friday, traders turned to believe that a 25 or 50 basis point rate cut was equally likely."
Sam is among those who think the Fed should take bigger action. She said: "The inflation data alone is enough for us to cut interest rates by 25 basis points next week, and there will be a series of rate cuts after that. The labor market has become weak since July last year, and Fed officials need to make a 50 basis point rate cut to prevent a potential labor market recession and be ready to take further action." (Jinshi)
