Economist: Federal Reserve May Cut Interest Rates by 50 Basis Points in December

BlockBeats News, June 3rd, economist at Netherlands International Group, Nate Lee, said that the Fed may wait until December to cut interest rates, but will opt for a significant 50 basis point cut. The economist stated that due to the inflationary impact of tariffs, the Fed will not cut rates immediately. However, the impact of tariffs on prices will be one-off. This will allow the central bank to boost the slowing economy later through rate cuts. The U.S. money market is currently pricing in a high likelihood of a rate cut in September. However, Nate Lee suggested that the Fed may also wait longer instead of opting for a larger rate cut in December. (FXStreet)