Institutions: The Fed's interest rate cut is not critical, the fragile balance of labor market is the core
Source: CoinWorld
Time: 2025-09-15 15:32:35
Investment management company Payden & Rygel said that the Fed cut interest rates by 25 basis points this week or 50 basis points, which is just a "small disagreement." The key is the current fragile equilibrium of the labor market - a stark contrast to the situation in 2024, analysts from the company pointed out. "To avoid a equilibrium collapse, the Fed should 'promote interest rate cuts as soon as possible,' as Director Waller suggested in his recent speech." The company's economic outlook for the next 12-15 months suggests that the federal funds rate should gradually approach 3%. The Federal Reserve currently sets the target range of federal funds rate at 4.25%-4.50%. (Golden and Stone)