SINGAPORE, Sept 13 (Askume) – The United States has every reason to cut interest rates by 50 basis points, former Federal Reserve Bank of New York president Bill Dudley said.
“I think 50 per cent of people have good reasons to do this, whether they want to do it or not,” he said at the annual Bretton Woods Commission forum on the future of finance in Singapore.
He said the current interest rate is 150-200 basis points higher than the so-called neutral interest rate of the US economy, and the policies of the US economy are neither restrictive nor loose. “So the question is: ‘Why don’t you start now?'”
Dudley had previously called on the Fed to begin cutting interest rates in July . US Treasury yields fell in Asian trading on Friday, while interest rate futures rose as the media gave close updates on whether the Fed would cut interest rates by 25 basis points or 50 basis points next week.
