Fed's dual mandate focuses more on employment

The Fed's decision to cut rates by 50 basis points was supported by a shift in officials' views on the economic outlook. Fed officials now expect the unemployment rate to remain at 4.4% by the end of 2024, compared with their previous forecast of 4% in June. Inflation has also slowed down in the eyes of Fed officials compared with June. They expect 12-month PCE inflation to be 2.3%, compared with 2.6% in the last dot plot. This shift in view shows that the Fed is paying more and more attention to the employment aspect of its dual mandate. (Jinshi)