According to ChainCatcher, reported by Jinshi Data, Federal Reserve's Musalem stated that it is still too early to decide whether to cut interest rates at next month's meeting. When asked if there is a reason to lower rates by 50 basis points next month, Musalem said that from his perspective, this would be 'not supported by the current economic conditions and economic outlook.'
Musalem stated that, on one hand, 'the data is starting to give us some indications of whether there is a possibility of persistent inflation.' At the same time, he mentioned the 'downside risks in the labor market.'
Musalem stated that the slowdown in the U.S. economy, along with tariffs pressuring corporate profit margins, may threaten the labor market, which has performed well so far. He said, 'I am weighing these two factors, and when we see tension between the two goals, we need to adopt a balanced strategy.'