Tom Porcelli, the Chief U.S. Economist at PGIM Fixed Income, explains that with the current federal funds rate at 5.3% and consumer price inflation below 3%, interest rates are relatively high. Even if the Fed decides to cut interest rates by 100 basis points, policy could still be tight. This is due to the Fed's policy adjustments being based on a period of significantly elevated inflation and lower unemployment rates in the economy. However, the recent economic environment has undergone significant changes, making the effectiveness of post-cut policies uncertain.