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Fed's Quarles: A significant rate cut over the next 12 months, starting with a 50 basis point cut, is reasonable
Odaily Planet Daily News According to Gulsby, a 50 basis point rate cut would be reasonable. The Federal Reserve is returning to its normal dual mandate mode. The current interest rate level is several hundred basis points above the neutral interest rate. Prior to the recent rate cut, the decline in inflation meant that the Fed had been tightening policy. If the situation continues, there will be a significant number of rate cuts in the next 12 months. There is still a long way to go to bring the interest rate to a level close to neutral. (Jinshi)