Mubasher: Former chair of the US Federal Reserve Janet Yellen said that she is in favour of a cut of 25 basis points (bps) in the central bank’s benchmark interest rate, amid a faltering global economy and slower inflation.

“I think in light of the risks, I would be inclined to cut a bit,” Yellen was quoted as saying on Sunday by CNBC.

“I wouldn’t see this as the beginning, unless things change, of a major easing cycle [but] I do think it’s appropriate,” Yellen said.

The world’s economic growth weakened partially “because of conflicts over trade and the uncertainty that’s caused for businesses,” she added.

The Fed is widely expected to slash interest rates by a quarter point at its two-day policy meeting this week for the first time in a decade.

Interest rate futures are fully priced for a quarter-point rate cut, with only a small chance of a half-point reduction.

On the inflationary side, Yellen viewed the rate as still too low.

The US central bank’s awaited move is seen as a pre-emptive move amid mounting worries over global growth and the impact of the ongoing trade conflict between the world’s biggest two economies.

Yellen advised that the focus should be on keeping conditions for a robust US economy that could remain on an expansionary course.

Under Yellen’s tenure, the Fed hiked interest rates in December 2015 for the first time since a decade then, initiating a monetary-tightening cycle aiming to reach a level where some leeway would be provide to cut them again to counter any future slowdown.