This is why Federal Reserve may slash interest rates only once and not more than 25 basis points

economictimes.indiatimes.com:

interest rates. Their hope was rekindled after Federal Reserve Chairman Jeremy Powell indicated a reduction in the bank rates in September. Many people believe it may happen earlier and the Fed may convene an emergency meeting to take a decision aimed at saving the US economy from slipping into a recession. However, Ed Yardeni, the president of Yardeni Research and a longtime Wall Street veteran believes there may be only one cut in this financial year and it may be as little as 25 basis points.

When will the Federal Reserve slash interest rates?

While many experts believe a reduction of 50 to 100 basis points and some others even hope for a cut of 125 basis points, Yardeni told CNBC he thinks it will be a quarter-point and it will be a one-and-done for the year. Despite the highest unemployment figure reported in July and a stock market meltdown last week, the Wall Street veteran believes the US economy is on solid footing and steep rate cuts are unnecessary.

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Will the unemployment rate come down?

Ed Yardeni has expressed hope that next month's job report will be much better. He and others think July's unemployment data may have been distorted by severe weather events. The Wall Street expert also believed that inflation is on track and it fall back to the Fed's 2% target by the end of the year. Similarly, the Consumer Price Index continued to cool last month to 2.9%, below the expected 3% yearly