Federal Reserve's Musalem: No Commitment to Rate Cuts Until Tariff Impact on Inflation Becomes Clear
According to a report by Jinse Finance, Federal Reserve's Musalem stated that if the rise in inflation proves to be temporary, expectations remain stable, and the economy shows significant weakness, a rate cut is still possible. The impact of tariffs on inflation may be temporary, but it could also be more lasting. A rate cut should not be promised before the impact of tariffs on inflation becomes apparent. U.S. economic activity has slowed down, and sentiment has declined.
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