The Fed cut interest rates by 0.25 percentage points for the first time, inflation is still above target

According to BlockBeats, Wall Street analyst Yadney pointed out that the Federal Reserve set a 2% inflation target for the first time in 2012. The current consensus on long-term unemployment rate is 4.2%, the unemployment rate in August is 4.3%, and the PCE inflation rate in July is 2.6%. FOMC decided this week to lower the benchmark federal funds rate by 0.25 percentage points, the first rate cut this year. Fed Chairman Powell said inflation is still above the 2% target, but the FOMC is concerned about a slowdown in non-farm employment. The Fed may hesitate to tighten its policies due to concerns about rising unemployment, and inflation may remain around 3.0%.