Fed Musalem: It is still too early to decide on the interest rate resolution for September.


On August 14, news reported that Fed'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 "not be supported by the current economic conditions and economic outlook." Musalem mentioned that on one hand, "data is starting to give us some indications of whether there is a possibility of persistent inflation." At the same time, he referred to 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 tensions between the two objectives, a balanced strategy is needed."
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