15:52
If the Fed significantly cuts interest rates in September, it may be seen as political interference.
Seema Shah, Chief Global Strategist at Principal Asset Management, stated that despite the rationale for easing policies, there is a lack of economic justification for a 50 basis point emergency rate cut. If the Fed were to do this, it might be seen as politically driven, increasing inflation expectations and market risks. The market might welcome a 25 basis point cut in September, but anything beyond that could have a counterproductive effect.