Former New York Fed President Dudley sees a strong case for 50bp interest rate cut

Dudley was president and chief executive officer of the Federal Reserve Bank of New York from January 27, 2009, through to 2018. He also served as the vice chairman and was a permanent member of the Federal Open Market Committee (FOMC).

“I think there’s a strong case for 50, whether they’re going
to do it or not,” he said at the Bretton Woods
Committee’s annual Future of Finance Forum in Singapore.
Dudley had previously called for the Fed to begin cutting in
July.

The 50bp cut hype has caught fire in Asia time:

• Pricing for a 50bp FOMC rate cut has firmed in just a few hours, 41% now

Based on this? I don’t know.

Tmiraos in the Wall Street Journal:

• WSJ Timiraos: Fed has a rate cut dilemma. Go big or go small
• Wall Street Journal Fed watcher asks on FOMC rate cut next week – Start small or big?

This article was written by Eamonn Sheridan at www.forexlive.com.