Federal Reserve's Musalem: It's still too early to decide on the September interest rate decision

ChainCatcher news, according to Jinshi Data, Federal Reserve's Musalem stated that it is still too early to decide whether to cut interest rates at next month's meeting. When asked if there is a reason to lower rates by 50 basis points next month, Musalem said that from his perspective, this would be "not supported by the current economic conditions and economic outlook."

Musalem noted that, on one hand, "the data is starting to give us some signs indicating the possibility of persistent inflation." At the same time, he mentioned the "downside risks in the labor market."

Musalem stated that the slowdown in U.S. economic growth, coupled with tariffs putting pressure on corporate profit margins, could threaten the labor market, which has performed well so far. He said, "I weigh these two factors, and when we see tension between the two goals, a balanced strategy is needed."