Craig Russel, Saxo Bank, said, “A lot of people are predicting a move down to 3%. That means that the interest rates and the inflation are equal; means there are no returns to the US money just by being in cash. So we think that, that constraints the Fed. We also think that there will be a 25 bps cut which was called for by a majority of regional Federal Governments.  But if we cut 50 bps, then that leaves (us) with only 50 more points for the rest of the year, should something happen. 25 bps leaves the Fed room to deal with these things, should there be another problem," reports CNBC-TV18.