Fed's Musalem: It is still too early to decide on the interest rate decision for September.

On August 14, Jin10 reported that the Fed's Musalem stated that it is still too early to decide whether to cut rates at next month's meeting. When asked if there is a reason to cut by 50 basis points next month, Musalem said that from his perspective, this would "not be supported by the current economic conditions and economic outlook." Musalem mentioned that on one hand, "the data is starting to give us some signs of the possibility of persistent inflation." At the same time, he pointed to the "downside risks in the labor market." Musalem stated that the slowdown in U.S. economic growth, along 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."