Economists: The Federal Reserve needs a more gradual pace of interest rate cuts

ChainCatcher news, ANNEX Wealth Management Chief Economist Brian Jacobsen stated that the Federal Reserve has not added any drama for this week. A 25 basis point rate cut still keeps the federal funds rate in a restrictive range, but it is no longer as tight as before.

Although the Federal Reserve indicated that the risks to its employment and inflation targets are roughly balanced, they might want to italicize "roughly." Because the election is influential, we can see that economic growth has slightly improved relative to the Fed's forecasts, but inflation has also slightly risen relative to their forecasts, which calls for a more gradual pace of rate cuts. They do not need to retract their rate cut plans, but they also do not need to accelerate the pace of rate cuts.