ChainCatcher news, a Fed official said he believed the decision to cut interest rates last month was a close call because the economic outlook now seems different than when the Fed began cutting interest rates four months ago. St. Louis Fed Reserve President Moussalem said that by the time of last month's meeting, the risk of inflation hovering between 2.5% and 3% had increased.
Therefore, he believes that further rate cuts should be made with more caution. Musallem had previously hinted that he supported the Fed's decision to cut interest rates by 50 basis points in September. "Since September last year, the situation has changed, the economic data is stronger, and the inflation figures are higher than expected. So I have changed my assessment of the risks, and future rate cuts must be gradual and more gradual than I thought in September."
Musalem stated that the employment market is in good condition and requires close attention, but there are still "inflation issues" in the Fed's tasks. Due to his estimate of the neutral interest rate being slightly higher than most colleagues, the currently set rate may be slightly below the appropriate limit.