Fed’s larger rate cut potentially ‘a mistake’, expert says

Fed’s larger rate cut potentially ‘a mistake’, expert says

STORY: Orczyk Sissel said she “never thought” the U.S. central bank cut would rates by 50 basis points because, historically, cuts of that size “have been reserved for extreme situations of economic stress. We are not in that situation.”

As a result, the Fed’s decision has her wondering whether there is economic data that policymakers see that “indicates to them that the economy is not doing as well as it may seem on the surface. And if that’s the case,” she added, “then potentially there is a risk to a soft landing which is concerning to me as an investor…. So I’m positioning a little more defensively than I was previously.”

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