Economist Tom Porcelli: Even with a 100 basis point rate cut, the Fed's policy is still tight

Odaily News Tom Porcelli, chief U.S. economist at PGIM Fixed Income, said that the current federal funds rate of 5.3% is relatively high compared to the current consumer price inflation rate of less than 3%. Even if the interest rate is cut by 100 basis points, the Fed's policy is still tight. The policy is calibrated based on significantly higher inflation and significantly lower unemployment, but these situations have changed. (Jinshi)