Former Federal Reserve economist Sam: There is evidence supporting a 50 basis point rate cut

ChainCatcher news, according to Jin Shi reports, former Federal Reserve economist Claudia Sahm pointed out in an interview that there is strong evidence supporting a 50 basis point rate cut. Doing so would help the Federal Reserve "recalibrate" and assist in stabilizing the unemployment rate, which has become too low.

Sahm stated, "The mission of the Federal Reserve is to achieve full employment. It is not about 'no recession'; they should seek to minimize labor market weakening as much as possible to bring inflation down to target levels. I believe the balance has now shifted." Sahm added that a larger rate cut would also allow those who believe the policy should have started cutting rates in July to see the Federal Reserve getting back on track.