According to ChainCatcher, reports from Jin Ten indicate that former senior economist of the Obama administration and current Harvard University professor Jason Furman believes that if the labor market remains healthy, the Fed may only cut the benchmark interest rate once this year.
Jason Furman stated that the Federal Reserve has entered a new phase of 'needing reasons' to cut rates. Last year, the Fed thought 'everything was fine, so why not cut rates,' but if the labor market remains healthy, considering concerns about the inflation outlook and uncertainty about whether rates are already in the best position to slow demand, then a 25 basis point cut this year is the most likely outcome.
However, Jason Furman added that if the situation changes and the unemployment rate begins to rise, 'the Fed will intervene' and loosen policy.