Fed's Mussa Al-Muallem skeptical about further rate cuts

律动Sep 22, 2025
#Macro
On September 22, Federal Reserve official Mussa Lam expressed doubts about further interest rate cuts, which is contrary to the general expectation in the financial market that the Federal Reserve will continue to reduce borrowing costs this year. Mussa Lam said that he supported a 25 basis point interest rate cut last week because he believed that the labor market faced increased risks. However, since the inflation rate is nearly one percentage point higher than the Federal Reserve's 2% target, further interest rate cuts may mean excessive complacency about rising prices. "If the public begins to doubt whether inflation can return to the 2% target, the work of restoring price stability will become more difficult and may bring higher costs to the economy." Traders' bets show that the Federal Reserve will cut interest rates by another 50 basis points in the remaining two meetings this year. In addition, his views are also contrary to those of the new Federal Reserve Governor Milan. Milan opposed a small interest rate cut at last week's meeting, advocating for a larger interest rate cut. (Golden Ten) [律动]
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Fed's Mussa Al-Muallem skeptical about further rate cuts

律动Sep 22, 2025
#Macro
On September 22, Federal Reserve official Mussa Lam expressed doubts about further interest rate cuts, which is contrary to the general expectation in the financial market that the Federal Reserve will continue to reduce borrowing costs this year. Mussa Lam said that he supported a 25 basis point interest rate cut last week because he believed that the labor market faced increased risks. However, since the inflation rate is nearly one percentage point higher than the Federal Reserve's 2% target, further interest rate cuts may mean excessive complacency about rising prices. "If the public begins to doubt whether inflation can return to the 2% target, the work of restoring price stability will become more difficult and may bring higher costs to the economy." Traders' bets show that the Federal Reserve will cut interest rates by another 50 basis points in the remaining two meetings this year. In addition, his views are also contrary to those of the new Federal Reserve Governor Milan. Milan opposed a small interest rate cut at last week's meeting, advocating for a larger interest rate cut. (Golden Ten) [律动]
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