TechFlow news, November 10 — Federal Reserve Governor Musalem said he expects the U.S. economy to rebound strongly in early next year, highlighting that officials need to be cautious about additional rate cuts. He cited factors such as fiscal support, the effects of previously implemented rate cuts, and deregulation. Musalem reiterated his view that current Fed policy is approaching a level where it will no longer exert downward pressure on inflation.
We must proceed with caution, which is very important, because I believe there is limited room for further rate cuts before monetary policy becomes excessively accommodative. After two rate cuts this year, Fed officials are divided over how much more easing is needed. Fed Chair Powell said last month that a December rate cut is not assured. Several officials who have spoken since the central bank’s October meeting have also pushed for a pause in rate cuts at the December meeting, stressing the need to contain inflation above the target. (Jinshi)
