Federal Reserve's Musalem urges caution in rate cuts, predicts strong economic rebound in the first quarter of next year

BlockBeats News, November 10, Federal Reserve's Musalem stated that he expects the U.S. economy to rebound strongly at the beginning of next year, highlighting the need for officials to be cautious about additional rate cuts. He mentioned factors such as fiscal support, the impact of rate cuts already implemented, and regulatory easing. Musalem reiterated his view that the current Federal Reserve policy is close to no longer exerting downward pressure on inflation. "We must act cautiously, which is very important, because I believe there is limited room for further rate cuts; otherwise, monetary policy will become excessively loose." After two rate cuts this year, Federal Reserve officials are divided on how much further easing is needed. Federal Reserve Chairman Powell said last month that a rate cut in December is not a foregone conclusion. Several officials who have spoken since the central bank's October meeting have also advocated for pausing rate cuts in December, emphasizing the need to curb inflation that remains above target. (Golden Ten Data)