【Federal Reserve Musalem: May Pause Rate Cuts】
Federal Reserve Musalem stated that decisions should focus on the overall interest rate path rather than a single meeting's decision.
Currently, inflation remains above target and there are persistent risks; whether the next employment report supports rate cuts will depend on its specific content.
He pointed out that current policy has appropriately tightened, but more data is needed to continuously adjust the interest rate path outlook until the September meeting.
Although the risks in the labor market are rising, they have not yet manifested; the inflation impact from tariffs is expected to gradually dissipate.
He emphasized that the interest rate path may include a pause in rate cuts, while also stating that if labor market risks significantly worsen, adjustments to the policy rate cannot be ruled out.
