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

MetaEraSep 22, 2025
#Macro
On September 22 (UTC+8), Federal Reserve official Mussa Lem expressed doubts about further interest rate cuts, contrary to the financial market's general expectation that the Federal Reserve will continue to lower borrowing costs this year. Mussa Lem said he supported a 25 basis point rate cut last week because he believed the labor market faced increased risks. However, with the inflation rate nearly one percentage point above the Fed's 2% target, further rate cuts could mean excessive complacency about rising prices. "If the public begins to doubt that inflation can return to the 2% target, the job of restoring price stability will become more difficult and could come at a higher cost to the economy." Traders' bets show that the Fed will cut interest rates by another 50 basis points at its 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 rate cut at last week's meeting, advocating for a larger rate cut. [PANews]
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Fed's Mussa Al-Muallem skeptical about further rate cuts

MetaEraSep 22, 2025
#Macro
On September 22 (UTC+8), Federal Reserve official Mussa Lem expressed doubts about further interest rate cuts, contrary to the financial market's general expectation that the Federal Reserve will continue to lower borrowing costs this year. Mussa Lem said he supported a 25 basis point rate cut last week because he believed the labor market faced increased risks. However, with the inflation rate nearly one percentage point above the Fed's 2% target, further rate cuts could mean excessive complacency about rising prices. "If the public begins to doubt that inflation can return to the 2% target, the job of restoring price stability will become more difficult and could come at a higher cost to the economy." Traders' bets show that the Fed will cut interest rates by another 50 basis points at its 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 rate cut at last week's meeting, advocating for a larger rate cut. [PANews]
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