Ramazan Eles 
Global financial markets have experienced a sharp downturn in recent trading sessions, prompting renewed calls for the Federal Reserve to take swift action to lower interest rates. While the Fed held interest rates steady in its previous meeting, some experts are now advocating for a more aggressive approach.
Jeremy Siegel, a renowned finance professor at the Wharton School and chief economist at WisdomTree, has urged the Fed to implement a 75 basis point interest rate cut immediately, followed by another 75 basis point cut in September. Siegel argues that the current federal funds rate should be between 3.5% and 4%.
“If they’re going to be as slow coming down as they were going up, which by the way was the first policy mistake in 50 years, then this is not a good time for the economy,” Siegel said in a CNBC interview.
Nigel Green of DeVere Group echoed the call for urgent action, advocating for a 25 basis point cut to avoid a recession. “The Fed needs to act now, otherwise there is a legitimate and widespread risk of a hard landing,” he warned in a note.
However, not all experts agree on the need for such aggressive rate cuts. Matt Hougan, CIO of Bitwise, believes that a more measured approach is warranted. “Powell has been pretty measured, and the timing around the elections makes a rush cut less likely,” Hougan said, adding, “But we’ll probably see 50 basis points in September and over 100 basis points of cuts by year-end. We’re entering a new global liquidity cycle, just like the last one.”
Hougan pointed to the market crash of March 12, 2020, when the Dow Jones Industrial Average plunged by 2,400 points and Bitcoin’s price fell by nearly 40%. This crash, he noted, turned into a historic buying opportunity, with Bitcoin surging over 1,000% in the following year as central banks intervened.