This week is a big one for central banks around the world
As there is a 61% chance that the FED will cut rates by 50bps on Wednesday, September 18.
“We’re probably going to get to 25, but [would] love to see 50,” David Volpe, deputy chief investment officer at Emerald Asset Management, told CNBC’s “Squawk Box Europe” on Friday.
“And the reason you do 50 next week is as a safety mechanism. You have seven weeks between next week and the … November meeting, and a lot of things can go wrong,” Volpe said.
“So, it’s more of a method of trying to get ahead of the curve. The Fed got caught out a little bit, so we think it would be better for them to get ahead of it, do 50 now, and then make a decision in November and December. Maybe they do 25 by then,” he added.
