According to PANews, PGIM Fixed Income Chief U.S. Economist Tom Porcelli has stated that the current federal funds rate of 5.3% appears relatively high compared to the consumer price inflation rate, which is below 3%. Porcelli noted that even a 100 basis point rate cut would still leave the Federal Reserve's policy in a tight stance. He explained that the policy was initially calibrated based on significantly higher inflation rates and notably lower unemployment rates, but these conditions have since changed.