Federal Reserve official Musalem is skeptical about a possible rate cut in September

BlockBeats News, on September 3, Federal Reserve's Musalem stated that the Fed's recent stance of keeping interest rates high is consistent with recent inflation being above target and a robust job market. He expressed skepticism about the possibility of a rate cut at the Fed's September meeting.

After Fed Chair Powell opened the door to rate cuts in a speech last month, a rate cut is now seen as the Fed's default option. Musalem acknowledged the slowdown in job growth, but said that the job market still appears solid due to a moderate unemployment rate and low initial jobless claims.

He believes that, on the other hand, there is still considerable uncertainty regarding inflation, especially considering the pressure from tariffs. Nevertheless, traders still generally expect that the majority of Fed members will support a 25 basis point rate cut in September, with a probability of 90%. (Golden Ten Data)