Fed may cut rates by .25%, see India GDP at 7.6%: Lehman

Rob Subbaraman, Senior Economist, Lehman Brothers expects the Fed to cut rates by 25 bps, then pause for sometime.

He believes that the Fed will keep their options open for a possibility of further cuts. He expects some fiscal stimulus for the US economy during the second half of the year.

Subbaraman feels that if the economy weakens despite the stimulus, Fed may cut rates to 1.25%. He believes that the Indian economy could weaken more than RBI reckons. He sees the Indian GDP growth outlook at 7.6%. He expects at least 50 bps hike in CRR by the end of the year.

More to come...