CoinVoice has recently learned that a Federal Reserve 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 Federal 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."
Musallem said the job market is in good shape and needs to be watched closely, but "there is still the inflation aspect" of the Fed's mission. Because his estimate of the neutral interest rate is slightly higher than most of his colleagues, the current interest rate may be set slightly below the appropriate limit. [Original link]