Claudia Sahm, chief economist at New Century Advisors and a former Fed economist, believes there is absolutely a case for the Fed to cut rates by 50 basis points in September. "There is absolutely a case for a 50 basis point cut, especially if you think you should have started cutting rates by 25 basis points in July," the Sam Rule proponent said in an interview. She believes the Fed cannot be blamed for information or data it did not have at some point in the past, especially now that retrospect shows that the US labour market has slowed more than previously thought. So a "50 basis point cut" is not necessarily a mistake, but a "recalibration" of policy to get it back on track.