In a rate cut earlier this month, the Fed cut interest rates by 50 basis points, far exceeding market expectations. In response, Musallem called on the Fed to resume the pace of "gradual" rate cuts to avoid the risks of excessive easing. He believes that the US economy may respond "very positively" to the current looser financial environment, which will in turn increase the pressure on demand growth and further extend the time for the Fed to achieve its 2% inflation target.

Musallem pointed out: "At this stage, the key is to appropriately relax the tightening of policies and gradually reduce restrictive measures on the economy." He believes that through this step-by-step approach, the Fed can better balance the relationship between supporting economic growth and curbing inflation. According to the economic forecast released by the Fed meeting this month, Musallem is one of the officials who expects to continue to cut interest rates by 25 basis points or more for the rest of the year.

This policy proposition reflects that some officials are optimistic about the economic outlook and believe that moderate easing policies can provide more momentum for the economy while avoiding excessive risks to inflation targets.