Fed's Musalem urges cautious rate cuts, predicts a significant rebound in the economy in the first quarter of next year.

On November 10, Fed official Moussailem stated that he expects the U.S. economy to rebound strongly early next year, highlighting the need for officials to be cautious about additional interest rate drops. He mentioned factors such as fiscal support, the impact of implemented interest rate cuts, and relaxation of regulations. Moussailem reiterated his view that current Fed policy is close to no longer exerting downward pressure on inflation. We must act cautiously; this is very important, as I believe there is limited room for further interest rate cuts; otherwise, monetary policy will become overly accommodative. After having lowered interest rates twice this year, Fed officials are divided on how much more cuts are needed. Fed Chair Powell stated last month that a rate cut in December is not a done deal. Several officials who have spoken since the Central Bank's October meeting have also pushed for a pause in rate cuts in December, emphasizing the need to curb inflation above the target. ( Jin10 )