According to Dale, a voting member of the Federal Reserve's FOMC, recent economic data has made him "more confident" that inflation is under control. It is now time to consider adjusting the current interest rate range of 5.25% - 5.50%. Although the labor market is slowing down, it is "not weak".
The CPI data released last week in the usa showed that inflation fell to 2.9% in the year ending July, the lowest point in three years. Daly said, "After the first quarter of this year, inflation has been gradually moving towards 2%." "We haven't reached that goal yet, but it clearly gives me more confidence that we are moving towards price stability." Daly said that the Federal Reserve hopes to relax its policy of "restriction" while still maintaining some restraint to "fully address" inflation.
This year's FOMC voter Daly said that the Fed does not want to "overtighten monetary policy during economic slowdown." She added that the situation of failing to make policy adapt to inflation progress and economic growth slowing down "will lead to the results we don't want, that is, price stability, but the labor market becomes unstable and shaky." Her comments were consistent with those of Atlanta Fed President Bostic. Bostic recently said that waiting too long to cut interest rates "will indeed bring risks." July's weak job report raised concerns about the health of the US economy and triggered a global stock sell-off to some extent. Daly said that companies generally do not resort to layoffs. Instead, they are now cutting discretionary spending to adapt to a "bubble world" that is no longer "unrestrained growth."
"Tightening policy while maintaining high interest rates when inflation is falling is equivalent to tightening policy," said Charles Gulspie.
Chicago Federal Reserve Chairman, Charles Gulspie, said in an interview that the mmf situation in the usa is tightening and still tightening. Although it is uncertain whether the Federal Reserve will cut interest rates next month as the market generally expects, if it doesn't, it may harm the job market. He said, "When you keep interest rates as high as they are now and maintain them at that level when inflation is falling, you are actually tightening policy." Although economic data has both positive and more worrying aspects, he said, "if monetary policy remains too tight for too long, the Federal Reserve's mission in employment will be compromised."
Editor/Emily