Federal Reserve official Musalem supports maintaining the current interest rate stance

OdailySep 3, 2025
#Macro
Fed's Mussalem said that the Fed's recent stance of keeping interest rates high is consistent with recent inflation being above target and the labor market performing strongly. He is skeptical that the Fed may cut interest rates at its September meeting. After Fed Chairman Powell opened the door to rate cuts in a speech last month, rate cuts are now seen as the Fed's default option. Mussalem acknowledged that job growth has slowed, but he said the labor market still looks solid, given the moderate unemployment rate and low initial jobless claims. He believes that, on the other hand, there is still considerable uncertainty about inflation, especially given the pressure from tariffs. Nevertheless, traders generally expect that a majority of Fed members will support a 25 basis point rate cut in September, with a 90% probability. (Golden Ten) [Odaily]
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Federal Reserve official Musalem supports maintaining the current interest rate stance

OdailySep 3, 2025
#Macro
Fed's Mussalem said that the Fed's recent stance of keeping interest rates high is consistent with recent inflation being above target and the labor market performing strongly. He is skeptical that the Fed may cut interest rates at its September meeting. After Fed Chairman Powell opened the door to rate cuts in a speech last month, rate cuts are now seen as the Fed's default option. Mussalem acknowledged that job growth has slowed, but he said the labor market still looks solid, given the moderate unemployment rate and low initial jobless claims. He believes that, on the other hand, there is still considerable uncertainty about inflation, especially given the pressure from tariffs. Nevertheless, traders generally expect that a majority of Fed members will support a 25 basis point rate cut in September, with a 90% probability. (Golden Ten) [Odaily]
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