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