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Before Nick Timiraos, the WSJ Fedwatcher was Jon Hilsenrath. He left the WSJ last year but is still watching the Federal Reserve and weighed in today, saying the Fed will cut by 50 basis points on Wednesday.
The Fed is on what I call an “Express Train” to a neutral interest rate. I expect it to cut rates by about two percentage points in all over the next year. This week’s cut is the opening shot and it makes some sense to move most aggressively when the rate is farthest away from neutral.
He also argues that not delivering 50 bps at this point would deliver something of a 'market spasm' that could hurt the economy.