If the Fed significantly cuts interest rates in September, it may be seen as political interference.

According to ChainCatcher news and Jin10 reports, Seema Shah, Chief Global Strategist at Principal Asset Management, stated that although the reasons for easing policy have strengthened, there is almost no economic basis to support an emergency rate cut of 50 basis points. If the Fed chooses to do so, the market may interpret it as being driven by political factors rather than data-based decision-making, which could raise inflation expectations and long-term yields, increasing the risk of a market pullback. The market may welcome a 25 basis point rate cut in September, but if it exceeds that magnitude, it could be counterproductive.