Citi Chief Economist: The Fed will cut 25 basis points for the first time

Odaily Planet Daily News Citigroup's chief economist, chief investment strategist and interim chief investment officer Steven Wieting believes that the most likely outcome of this week's Fed interest rate decision is a 25 basis point cut, but he emphasizes that no one knows exactly what the Fed will do. He said, 'We expect a 25 basis point rate cut, but if Fed officials want to do it faster, we will accept a 50 basis point cut. If they are willing to act quickly, they can also cut rates quickly.' However, Steven Wieting pointed out that the Fed's rate cut history indicates that when adjusting monetary policy to adapt to the current economic situation, the Central Bank will cut rates by 25 basis points; and when the economy is on the edge of recession, the Fed usually makes larger rate cuts. Steven Wieting pointed out that the interest rate cut of 25 or 50 basis points at this meeting will not change the game rules because he expects the Fed to cut interest rates by 200 basis points by mid-2025. He believes that timing is important. (Jin10)