Federal Reserve's Musalem Supports Gradual Rate Cuts

According to BlockBeats, on October 8, the President of the Federal Reserve Bank of St. Louis, Musalem, expressed his support for the Federal Reserve's decision to cut interest rates by 50 basis points last month. However, he emphasized his preference for further rate cuts to be implemented gradually. Considering the current economic conditions, Musalem believes that the cost of easing too early and too much outweighs the cost of easing too late and too little. Over time, a gradual reduction in policy rates may be appropriate. He also predicted that the Federal Reserve's preferred inflation measure, the Personal Consumption Expenditures Price Index (PCE), will converge to 2% over the 'next few quarters.'