Viewpoint: If the Federal Reserve significantly cuts interest rates in September, it may be seen as political interference

ChainCatcher news, according to Jinshi reports, Principal Asset Management Chief Global Strategist Seema Shah stated that although the rationale for easing policies has strengthened, there is almost no economic basis to support an emergency rate cut of 50 basis points.

If the Federal Reserve chooses to do so, the market may interpret it as being driven by political factors rather than data-based decisions, which could raise inflation expectations and long-term yields, increasing the risk of a market correction. The market may welcome a 25 basis point rate cut in September, but if it exceeds this magnitude, it could be counterproductive.