The Federal Reserve will unveil its decision on interest rates Wednesday afternoon, and a cut is widely expected by investors. CNBC asked former Federal Reserve officials to weigh in on the upcoming decision.
Rate Cut: Do We Even Need One?
“I don’t think they even need to cut, however, I think the market reaction to not cutting or even cutting a quarter point would be unnecessary to endure.”
Bob McTeer, Former Dallas Fed President
The Case for a Rate Cut
“Every further cut in the funds rate at the margin helps. This is an economy that’s weakening very sharply, likely to fall at a pretty good clip in the fourth quarter (and) be weak through next year. Further easing is in order; I think we go 50 basis points, and I think they leave the door open for even further cuts.”
Laurence Meyer, Former Federal Reserve Governor
More news from CNBC.com:
- Investors Expect Rate Cut But Differ on How Much
- Congress and Wall Street Set to Clash Over Bonuses
- Fast Money: Are Global Recession Fears Overblown?