September 17, 2024 at 11:35PM
A snippet via Seema Shah, chief global strategist at Principal Asset Management:
“Since the late 1980s…25-basis-point cuts have become the norm, and 50 basis points have been the exception.”
Only two rate-cutting cycles have begun with cuts greater than 25 basis points: January 2001, amid the dot-com bubble, and September 2007 during the sub-prime mortgage collapse
Both of those periods stood out, “characterized by concerns around severe asset price bubbles and financial systemic risk.”
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Principal Financial Group is a US investment management and insurance company.
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I posted earlier:
Most analysts expect a 25bp interest rate cut from the Federal Reserve today
Market pricing is in favour of 50, and I have seen plenty of reliable finance people arguing in good faith for 50. FWIW I am looking for 25 and have been for some time.
This article was written by Eamonn Sheridan at www.forexlive.com.
