Lates News

On September 24th, the Financial Times reported that Federal Reserve official Gurlspie warned against a series of interest rate cuts, stating that the sharp slowdown in the job market does not necessarily mean an economic recession is imminent. Gurlspie supported a 25 basis point rate cut at the Federal Open Market Committee meeting last week. However, he indicated that he may not be inclined to support further rate cuts in the upcoming policy vote. He said, "I am uncomfortable with the idea of making large rate cuts too early based on the assumption that inflation may be only temporary and will fade on its own." He also added that many businesses in the Midwest are still concerned about inflation not being under control. Gurlspie referred to a set of new labor statistics compiled by the Chicago Fed, which integrates multiple economic reports to generate real-time data, showing that the job market is only experiencing a "moderate" cooling, not indicating that the US economy is in a sharp slowdown. Gurlspie said, "Our job market overall remains stable and reliable." He also added that the 4.3% low unemployment rate and labor market dynamics are more positive than the non-farm employment data affected by Trump's immigration restrictions.