Analyst: The Fed still has room to choose how much to cut interest rates

Scott Helfstein, head of investment strategy at Global X, said the Fed is likely to take note of continued strength in the consumer after better-than-expected U.S. retail sales in August. "With CPI inflation at 2.5%, a 300 basis point real rate is probably too high, but the Fed does have the freedom to move, and could start with a 25 basis point cut or a full 50 basis points," he said. The key, he said, is for the Fed to start cutting rates, and the magnitude of the cuts may have little to do with the economy. Retail sales growth has been slightly below the long-term average in recent months, but is still growing at a moderate pace, he said. (Jinshi)