Baumann: It's Time to Take Decisive Action and Cut Interest Rates

BlockBeats News, September 23rd: Federal Reserve Governor Bowman stated that it is time to take decisive action and cut interest rates. He is more confident that tariffs will have a relatively small impact on inflation. If the labor market continues to deteriorate, a faster rate cut may be necessary. If demand conditions do not improve, companies may start laying off employees.

In the coming months, the labor market may deteriorate rapidly. Bowman supports a 25-basis-point rate cut, but more importantly, the Fed is now actively supporting the labor market.

The impact of tariffs on inflation will gradually diminish, with current inflation levels close to the target. If the economy evolves as expected, last week's rate cut is expected to be the first step towards a more neutral interest rate. (FXStreet)