ING: The Fed may cut interest rates by 50 basis points in the rest of this year

James Knightley, chief international economist at ING, said the Federal Reserve could cut interest 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, which have a single goal of reducing inflation to 2%, the Fed has two main goals: price stability and full employment. If the Fed is confident that it can achieve its inflation target, it may shift its focus to supporting employment. Knightley said it would be very appropriate for the Fed to cut interest rates by 25 basis points in November and then cut interest rates again in December. He also predicted that the Fed may cut interest rates to around 3%-3.5% in the summer of 2025. (Jinshi)