Federal Reserve Official Cautions Against Rate Cut Amid Economic Uncertainty

Federal Reserve official, Musalem, has indicated that a rate cut at next month’s meeting is premature. When questioned about the potential for a 50 basis point reduction, Musalem argued that such a move would be unsupported by current economic conditions and outlook. He noted that data suggests the possibility of persistent inflation. Furthermore, Musalem highlighted labor market concerns. He stated that the slowdown in US economic growth, along with tariff pressures on corporate profit margins, could negatively impact job market performance, which has historically been strong.