She said, however, there is a good case for a 50-basis-point cut, adding that the Fed needs to 'back off' its restrictive monetary policy.
It states that the initial phase of a recession has started when the three-month moving average of the U.S. unemployment rate is at least half a percentage point higher than the 12-month low.The U.S. Federal Reserve does not need to make an emergency rate cut, despite recent weaker-than-expected economic data, according to Claudia Sahm, chief economist at New Century Advisors.
She said, however, there is a good case for a 50-basis-point cut, adding that the Fed needs to "back off" its restrictive monetary policy. "The best case is they start easing gradually, ahead of time. So what I talk about is the risk , and I still feel very strongly that this risk is there," she said., which states that the initial phase of a recession has started when the three-month moving average of the U.S. unemployment rate is at least half a percentage point higher than the 12-month low.
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