Former Obama administration economist: The Federal Reserve may only lower the benchmark interest rate once this year

ChainCatcher news, according to Jin Shi reports, former senior economist of the Obama administration and current Harvard University professor Jason Furman believes that if the labor market remains healthy, the Federal Reserve may only cut the benchmark interest rate once this year.

Jason Furman stated that the Federal Reserve has entered a new phase of "needing a reason" to lower interest rates. Last year, the Federal Reserve thought "everything was fine, so why not cut rates," but if the labor market remains healthy, considering concerns about the inflation outlook and uncertainty about whether interest rates are already at the optimal level to slow demand, a 25 basis point cut this year is the most likely scenario.

However, Jason Furman added that if circumstances change and the unemployment rate begins to rise, "the Federal Reserve will intervene" and ease policies.