Citigroup chief economist: The Fed will cut interest rates by 25 basis points for the first time
Odaily Planet Daily Report: Citi Wealth Management's Chief Economist, Chief Investment Strategist, and Interim Chief Investment Officer Steven Wieting believes that the most likely outcome of the Federal Reserve's interest rate decision this week is a 25 basis point rate cut, but he emphasizes that no one can know exactly what the Federal Reserve will do. He said: "We expect a 25 basis point rate cut, but if the Fed officials want to do it faster, we will also accept 50 basis points, and if they are willing to act quickly, they can also cut rates quickly." However, Steven Wieting pointed out that the Federal Reserve's history of rate cuts shows that when the central bank is merely adjusting monetary policy to accommodate the current economic situation, it will cut rates by 25 basis points; while when the economy is on the verge of recession, the Federal Reserve usually makes larger rate cuts. Steven Wieting pointed out that since he expects the Federal Reserve to cut rates by 200 basis points by the mid-2025, a 25 or 50 basis point cut at this meeting will not change the game rules. He believes that the timing is the key issue.
