Federal Reserve Musallam: It's too early to decide on September's interest rate decision

The Federal Reserve said it was too early to decide whether to cut interest rates at its meeting next month. Asked if there was a case for a 50 basis point rate cut next month, Musallum said that from his perspective, it would be "not supported by current economic conditions and the economic outlook". On the one hand, Musallum said, "the data is starting to give us some indication as to whether there is a possibility of sustained inflation". At the same time, he cited "downside risks to the labor market". Musallum said that slowing U.S. economic growth, combined with the pressure on corporate profit margins from tariffs, could threaten the labor market, which has performed well so far. "I'm weighing the two, and when we see tension between the two goals, there needs to be a balanced approach," he said.