Fed's "Crazy Journey" Just Beginning, September Meeting May Cut Rates by 50 Basis Points

Two weeks ago, Dudley, who called for a rate cut in July, believes that the longer the Fed delays cutting rates, the greater the potential economic damage. Once in recession, the Fed is unlikely to urgently cut rates immediately. September may see a 25 or 50 basis point cut depending on the data. Over the next few months, the interest rate outlook may remain uncertain, with greater volatility in the stock and bond markets.