The Federal Reserve's Moustafa Salem is skeptical about further interest rate cuts

BlockBeats News, September 22: Federal Reserve official Mousalem expressed doubt about further interest rate cuts, contrary to the widespread market expectation that the Fed will continue to lower borrowing costs this year. Mouselam stated that he supported a 25 basis point rate cut last week because he believed that the risks to the labor market had increased. However, due to the inflation rate being almost one percentage point above the Fed's 2% target, further rate cuts could mean an excessive complacency towards price increases. "If the public begins to doubt whether inflation can return to the 2% target, then the task of restoring price stability will become more difficult and could impose a higher cost on the economy." Trader bets indicate that the Fed will cut rates by another 50 basis points in the remaining two meetings this year. Furthermore, his views also differ from those of the Fed's new board member Milan. Milan opposed a small rate cut at last week's meeting and advocated for a more substantial cut. (FX678)