Jumbo 50 basis points Fed rate cut should not raise alarm, analyst says

Published On Sep 9, 2024, 7:23 AM

Analyst Michael Yoshikami argues that the Federal Reserve can perform a significant 50 basis point interest rate cut without alarming markets. This move could indicate the Fed's readiness to proactively stimulate job growth rather than signal panic over economic conditions. Current expectations lean towards a 75% chance of a 25 basis point cut, but sentiment is divided on whether a larger cut would signal deeper economic concerns. Despite fears of recession, analysts maintain that the economy's fundamentals appear stronger than at similar past junctures.