Economist Tom Porcelli: Even with a 100 basis point rate cut, the Fed's policy is still tight

Tom Porcelli, Chief US Economist of PGIM Fixed Income, stated that the current federal fund rate of 5.3% appears relatively high compared to the current consumer price inflation rate of less than 3%. Even if the interest rate is lowered by 100 basis points, the policy of the Federal Reserve remains tight. The policy is calibrated based on significantly higher inflation rates and significantly lower unemployment rates, but these conditions have already changed.