Security and Information Management Report: History Suggests a 25 Basis Point Fed Rate Cut is More Likely
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September 17, 2024
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PANews: 25bps Rate Cut More Likely Than 50bps, Says Sima Shah
Sima Shah, Chief Global Strategist at Trust Capital Management, said in a report that while some may expect a 50bps rate cut from the Federal Reserve this week, history suggests a 25bps cut is more likely.
She analyzed, "Since the late 1980s, a 25bps rate cut has become the norm, while a 50bps cut has been the exception." Only two rate cut cycles have started with more than 25bps cuts: January 2001 during the dot-com bubble and September 2007 during the subprime mortgage crisis. These two periods were highly notable, characterized by concerns over severe asset price bubbles and systemic financial risks.
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