Scott Helfstein, head of investment strategy at Global X, said the Fed is likely to take notice of continued consumer strength after better-than-expected retail sales in the US in August. He said, “With CPI inflation at 2.5%, 300 basis points of real rates might be too high, but the Fed does have some flexibility to start with a 25-basis-point cut or go for a full 50-basis-point cut.” He said the key is for the Fed to start cutting rates, and the size of the cut may not be as important as the fact that it is happening. He said retail sales have grown slightly below the long-term average in recent months, but are still growing at a moderate pace. (Jin Shi)