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Federal Reserve's Mester: It's Too Early to Decide on September Rate Decision
Summary: According to reports from FXStreet, Federal Reserve's Mester stated that it is too early to decide whether to cut rates at next month's meeting. When asked if there is a reason to cut rates by 50 basis points next month, Mester said that from his perspective, it would not be supported by the current economic ...
According to reports from FXStreet, Federal Reserve's Mester stated that it is too early to decide whether to cut rates at next month's meeting. When asked if there is a reason to cut rates by 50 basis points next month, Mester said that from his perspective, it would not be supported by the current economic conditions and outlook. Mester mentioned signs of potential sustained inflation on one hand, while also pointing out downside risks in the labor market. He noted that the slowing U.S. economic growth, combined with tariffs putting pressure on corporate profit margins, could threaten the strong labor market performance so far. Mester stated: 'I'm weighing these two factors, and when we see tension between the two objectives, we need to adopt a balanced strategy.'
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Link: Federal Reserve's Mester: It's Too Early to Decide on September Rate Decision [Copy]
