Former Obama administration economist: Fed may only cut benchmark interest rate once this year
<ChainCatcher report, according to Jinshi News, former senior economist of the Obama administration and current Harvard University professor Jason Furman believes that if the labor market remains healthy, the Federal Reserve may only cut the benchmark interest rate once this year.> Jason Furman said that the Federal Reserve has entered a new stage where it "needs a reason" to cut interest rates. Last year, the Federal Reserve believed that "everything was fine, so it was fine to cut interest rates," but if the labor market remains healthy, considering concerns about the inflation outlook and uncertainty about whether interest rates are already in the best position to slow demand, a 25-basis-point rate cut this year may be the most likely event. However, Jason Furman added that if the situation changes and the unemployment rate starts to rise, "the Federal Reserve will intervene" and loosen its policy.
