Former officials of the Federal Reserve (Fed) are divided over whether to cut interest rates by 25 or 50 basis points. Loretta Mester supports a cautious approach with a series of smaller rate cuts, while James Bullard believes a modest 25 basis point cut is more appropriate. The debate has caused market volatility, contributing to the rise of the S&P 500. Jim Reid of Deutsche Bank suggests the speculation surrounding the rate cut could push the S&P 500 to close at a new high, which is unusual given the current record-breaking stock market.



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