Former Fed Economist Sam: A 50-Basis-Point Rate Cut Will Help Stabilize Unemployment and Inflation
Publication Time:2024-08-23 23:56:09
In an interview, former Federal Reserve economist Claudia Sam pointed out that there were strong arguments in favor of the Fed taking a 50-basis-point rate cut. She believes this move will help the Fed adjust its policy direction, alleviate potential economic imbalances caused by the current low unemployment rate, and contribute to stabilizing inflation levels, bringing them back into target ranges. Sam emphasized that the Fed's top priority is achieving full employment, not pursuing zero unemployment. She noted that the balance has shifted towards using rate cuts to limit excessive tightening in the labor market in order to achieve inflation targets. Additionally, Sam mentioned that a larger-scale rate cut would not only meet the expectations of some market participants for initiating a rate cut cycle in July but also indicate that the Fed is returning to its path of policy normalization.
Fed
rate cut
Inflation
50 Basis Points
unemployment