Opinion: The Interest Rate Should Gradually Approach 3%, and the Magnitude of This Month's Rate Cut Is Not Key

BlockBeats News, September 15th - Investment management company Payden & Rygel stated that whether the Federal Reserve cuts interest rates by 25 basis points or 50 basis points this week is only a "minor divergence," and the key lies in the current fragile balance of the labor market — a situation drastically different from that of 2024. To prevent a breakdown of this balance, the Federal Reserve should proceed with interest rate cuts as soon as possible, as suggested in a recent speech by Governor Waller. Payden & Rygel's economic outlook for the next 12-15 months indicates that the federal funds rate should gradually approach 3%, while the current target range set by the Federal Reserve for the federal funds rate is 4.25%-4.50%. (FXStreet)