Former Fed economist Sam: There are arguments for a 50 basis point rate cut

Claudia Sahm, a former Fed economist, noted in an interview that there are strong arguments for a 50 basis point rate cut. Doing so would help the Fed "recalibrate" and help stabilize the unemployment rate, which has become too low. "The Fed's mission is to achieve full employment," Sam said. "It's not that there's no recession." They should be looking for as little labor market weakening as possible to bring inflation down to target, and I think the balance has shifted now. "Sam added that a sharper rate cut would also allow those who think policy should have started cutting rates in July to see the Fed back on track.