Institutional Outlook on US CPI: August inflation may open the door to a 50 basis point rate cut by the Fed

The September 11th data from Golden Ten News, Chief Economist Russell Price of Ameriprise Financial, said that the drop in August inflation data may be surprising and open the door for the Fed to start cutting interest rates by 50 basis points. He expects the overall monthly CPI to be 0.1%, lower than the market's general prediction of 0.2%. He said, "This will provide the Fed with greater room to cut interest rates by 50 basis points, rather than 25 basis points." However, he said that if the Fed chooses to take a more moderate approach to interest rate cuts, it is still possible to avoid an economic recession. It is not important for them to cut interest rates by 50 basis points.