Former Fed economist Sam: There are arguments for a 50 basis point rate cut

In an interview, former Fed economist Claudia Sahm pointed out that there are strong arguments for a 50 basis point rate cut. Doing so will help the Fed "recalibrate" and help stabilize the unemployment rate, which has become too low. "The Fed's mission is to achieve full employment," said Sahm. It's not that "there is no recession." They should seek as little labor market weakening as possible to reduce inflation to the target level. I think the balance has now shifted." Sahm added that a larger rate cut would also allow those who believe that policy should have started to cut rates in July to see that the Fed is back on track.