Federal Reserve's Musalem: It is still too early to decide on the September interest rate decision
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 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 economic outlook." Musalem mentioned that, on one hand, "data is beginning to give us some indications of the possibility of persistent inflation." Meanwhile, he pointed out the "downside risks in the labor market." Musalem indicated that the slowdown in U.S. economic growth, coupled with tariffs putting pressure on corporate profit margins, could threaten the labor market, which has performed well so far. He stated, "I am weighing these two factors, and when we see tension between the two goals, a balanced strategy is needed."
