The Federal Reserve's Musalem urged cautious rate cuts, forecasting a sharp rebound in the economy in the first quarter of next year

Mousalem said he expected the US economy to rebound strongly early next year, underlining the need for officials to be cautious about additional rate cuts. He cited factors such as fiscal support, the impact of already implemented rate cuts and deregulation. Mousalem reiterated his view that current Fed policy is close to no longer exerting downward pressure on inflation. It is important that we proceed with caution because I believe there is limited scope for further rate cuts or monetary policy will become excessively loose. Fed officials are divided on how much more needs to be cut after cutting rates twice this year. Fed Chairperson Jerome Powell said last month that the December rate cut was not a matter for DingTalk on the board. Several officials who have spoken since the central bank's October meeting have also pushed for a moratorium on rate cuts in December, emphasizing the need to rein in above-target inflation.