TechFlow, Aug 14 — According to Jinshi Data, Federal Reserve Governor Musalem said it is too early to decide whether to cut interest rates at the next meeting. When asked if there was a case for a 50-basis-point rate cut next month, Musalem stated that, from his perspective, such a move would "not be supported by current economic conditions and the outlook."
Musalem noted that, on one hand, "data are starting to give us some signals about the possibility of persistent inflation." At the same time, he pointed to "downside risks to the labor market."
He added that slowing U.S. economic growth, combined with tariffs pressuring corporate profit margins, could threaten the labor market, which has performed well so far. "I'm weighing these two sides," he said. "When we see tensions between our dual mandates, we need to adopt a balanced approach."
