The Federal Reserve's sharp interest rate cut this month could spook financial markets and send the wrong signal about the risk of an impending recession, according to an economist.
The comments come as US central bank policymakers are expected to begin easing policy at their meeting on September 17-18. Investors will be closely watching economic data for signs of the Fed’s potential rate cuts.
George Lagarias, chief economist at Forvis Mazars, said that while no one is certain about the size of the Fed’s rate cut at the upcoming meeting, he is “firmly” in favor of a 25 basis point cut. “I don’t think a 50 basis point cut is necessary,” Lagarias said.
