Economist Tom Porcelli: Even with a 100 basis point rate cut, the Fed's policy is still tight
According to a report by Gold Ten, PGIM Fixed Income's Chief U.S. Economist Tom Porcelli stated that the current federal funds rate of 5.3% appears relatively high compared to the current consumer price inflation rate of less than 3%. Even if the Federal Reserve cuts rates by 100 basis points, its policy would still be relatively tight, as the policy is calibrated based on significantly higher inflation rates and significantly lower unemployment rates, but these conditions have already changed.
