Fed's Musalem: It Is Too Early to Decide on September Rate Decision
According to ChainCatcher, citing Jinshi Data, Federal Reserve official Musalem stated that it is still too early to decide whether to cut interest rates at next month's meeting. When asked if there was any reason to cut rates by 50 basis points next month, Musalem said that from his perspective, this would "not be supported by the current economic conditions and outlook."
Musalem noted that on one hand, "the data is starting to give us some indications as to whether there is a possibility of persistent inflation." At the same time, he mentioned "downside risks in the labor market."
Musalem stated that the slowdown in U.S. economic growth, combined with the pressure tariffs are putting on corporate profit margins, could threaten the labor market, which has performed well so far. He said, "I am weighing these two factors, and when we see tension between our two objectives, we need to adopt a balanced approach."
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