Numerous Wall Street analysts predict that the Federal Reserve will cautiously make its "first cut"

Many Wall Street analysts still expect the Federal Reserve's first step in cutting interest rates to be more cautious. "I hope they cut by 50 basis points, but I guess they will cut by 25 basis points," said Mark Zandi, chief economist at Moody's Analytics. "They have already accomplished their tasks of full employment and inflation return, and a fund rate of around 5.5% is too high. Therefore, I think they need to quickly normalize the interest rate, and there is plenty of room to do so." Tom Simons, an economist at Jefferies in America said: "Although tightening policies seem effective, they did not work exactly as imagined; therefore easing policies should also be considered uncertain." "So if you're unsure don't rush," former Dallas Fed President Kaplan said: "I guess their opinions differ." Seema Shah from Principal Global Investors stated that for the Fed it ultimately comes down to deciding which risk is greater - if it cuts rates by 50 basis points it could reignite inflationary pressures; if it only cuts by 25 basis points this could potentially lead to economic recession. Having been criticized for reacting too slowly to an inflation crisis, the Fed may take a passive response towards risks of economic recession rather than being proactive.(Jinshi)