St. Louis Fed President Mousalem: Fed should cut interest rates gradually

The Financial Times disclosed that St. Louis Fed President Musallem said that the Fed should resume its "gradual" approach to rate cuts after cutting rates by 50 basis points earlier this month, a larger-than-usual amount. Musallem said that the US economy could respond "very positively" to a looser financial environment, thereby stimulating demand and extending the time it takes for the Fed to reduce inflation to 2%. "For me, it's about easing the brakes at this stage, it's about gradually reducing policy restrictions," said Musallem, who is one of the officials who expects to cut rates by more than 25 basis points for the rest of the year, according to forecasts released at this month's meeting. (Jinshi)