Summers: Fed made the right move in cutting rates at September meeting

Former U.S. Treasury Secretary Summers said that although the Federal Reserve failed to act quickly when inflation soared in 2021, which was a "low point" in the history of its monetary policy, it eventually took enough measures to correct the economy. The former Treasury secretary said that it was "the right thing to do" for the Fed to cut interest rates at its September meeting, but he believed that "we need to be more cautious about the medium-term outlook for monetary policy." Summers said he believed that the Fed "will not be able to cut interest rates as much as the market expects" in the next two years. The derivatives market reflects that traders expect the Fed to cut its benchmark interest rate to about 3% in the next two years. The current benchmark interest rate target range is 5.25% to 5.5%. (Jinshi)