ING: Fed may cut rates by 50 bps for the rest of the year

James Knightley, chief international economist at ING, said the Fed could cut rates by 50 basis points for the rest of the year. Knightley explained that the Fed's current approach focuses on risk management. Unlike most central banks whose single goal is to bring inflation down to 2%, the Fed has two main goals: price stability and full employment. If the Fed is confident that it will achieve its inflation target, it may shift its focus to supporting employment. knightley said it would be appropriate for the Fed to cut interest rates by 25 basis points in November, followed by another rate cut in December. He also predicts the Fed could cut rates to around 3%-3.5% by the summer of 2025.