Institution: Fed Rate Cut This Week Will Be Seen as "Low-Risk" Move
BlockBeats News, October 28, Federal Reserve Chair Powell once defined last month's 25 basis point rate cut as a risk management move aimed at avoiding undue drag on the economy from low-risk operations. Neil Dutta, Chief Economist at Renaissance Macro, pointed out that if another 25 basis point rate cut occurs this week, its risk manageability will be similar. Dutta's analysis stated, "The ongoing softness in the labor market accumulates, giving reason to expect a cooling of inflation." He added that the layoff plans announced by several large companies all corroborate that the employment environment is becoming increasingly challenging for workers. At the same time, Dutta stated that a deep dive into price data indicates that, if excluding tariff factors, the core inflation level should be close to the Fed's target. (FXStreet)
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