Former New York Fed President Dudley wrote in one of his recent articles that it makes sense for the Fed to aggressively cut interest rates by 50 basis points. The two objectives of the Fed's dual mandate (price stability and maximum employment) have become more balanced, suggesting that monetary policy should be neutral and neither inhibit nor promote economic activity. However, short-term interest rates are still well above neutral levels now. This discrepancy needs to be corrected as soon as possible. A 50 basis point rate cut would also coincide with the Fed's dot plot expectations. The market expects a total rate cut of at least 100 basis points by the end of 2024. If the Fed cuts rates by just 25 basis points now and expects a 50 basis point cut this year, it would send a hawkish signal and raise doubts in the market about why it did not cut rates by 50 basis points in the first place. A 50 basis point cut in September would help the Fed get out of this predicament.