Comment by adabyron

75 would shock the market & probably hurt Warren's party. 50 has been stated as something that may scare the market into thinking the Fed is worried more than letting on. They could maybe do 50 if they give a lot of context & forward guidance & take the next meeting off of rate cuts instead of the expected 25, 25, 25. Many are also very concerned we could make inflation sky rocket by cutting to fast, especially if the next president were to increase tariffs on a lot of goods.

I sometimes wonder if Warren is playing 3D chess. I assume she is far smarter than me on these topics but her proposals often make no sense to me. She also never gives good logic to the public behind them, even on long form one on one interviews with someone sympathetic to her cause interviewing her.

Fed also really did not want to cut rates this close to the election. They want to be neutral but they've done a great job of forward guidance & reacting to the data.