Former Fed Mester on CNBC says”
- 25 or 50 bp in cuts is really a close call.
- Good case for series of 25 basis points cuts
- The Fed is starting a series of cuts to bring restrictiveness back down
- It is time to start a new phase of bringing rates lower
- The Fed will stay on the job until inflation moves to 2%, but wants to not see unemployment moving higher
- Always focused on wHat is the best we can do for the US economy. Politics never entered the room.
Some of her thought process for 25 bps vs 50 bps
The market is pricing in a 59% chance of 50 basis points
This article was written by Greg Michalowski at www.forexlive.com. Source