According to economic analysis reports, Fed official Musalem recently expressed a cautious view on the U.S. economic situation. He pointed out that it is still too early to make a decision on whether to cut interest rates at the September meeting. When asked whether there is reason to significantly cut rates by 50 basis points next month, Musalem believed that such an approach is inconsistent with the current economic conditions and outlook.



Mussallem emphasized the two major challenges facing the current economy. First, he mentioned that the latest data shows possible signs of persistent inflation, which requires close attention. Second, he expressed concerns about the downside risks in the labor market.

Mussalem pointed out that the slowdown in the U.S. economic growth, coupled with the impact of tariff policies on corporate profitability, may pose a threat to the currently strong labor market. In the face of this complex situation, he emphasized the need to seek a balance between controlling inflation and maintaining employment, adopting a prudent policy stance.

Moussalem's remarks reflect the dilemma the Fed faces when formulating monetary policy. On one hand, there is a need to be vigilant about inflationary pressures, while on the other hand, it is essential to maintain stability in the job market. This trade-off will dominate the Fed's policy direction for the foreseeable future. Economists believe that the Fed's future decisions will increasingly rely on real-time economic data to ensure the precision and effectiveness of its policies.
View Original
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
  • Reward
  • 6
  • Repost
  • Share
Comment
0/400
BtcDailyResearchervip
· 08-17 10:25
Inflation data continues to be tough.
View OriginalReply0
LiquidityNinjavip
· 08-17 01:29
In the end, it's still a pigeon.
View OriginalReply0
LiquidityWhisperervip
· 08-14 16:51
Fall and rise must eventually be settled.
View OriginalReply0
AirdropChaservip
· 08-14 16:23
Interest rate cuts seem unlikely.
View OriginalReply0
Trade Crypto Anywhere Anytime
qrCode
Scan to download Gate App
Community
English
  • 简体中文
  • English
  • Tiếng Việt
  • 繁體中文
  • Español
  • Русский
  • Français (Afrique)
  • Português (Portugal)
  • Bahasa Indonesia
  • 日本語
  • بالعربية
  • Українська
  • Português (Brasil)