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Economist Tom Porcelli: Even with a 100 basis point rate cut, the Fed's policy remains tight.
According to Jin10’s report, Tom Porcelli, Chief US Economist at PGIM Fixed Income, stated that the current 5.3% federal Intrerest Rate is relatively high compared to the current inflation rate of less than 3%. Even with a 100 basis point rate cut, the Fed’s policy remains tight. The policy is calibrated based on significantly higher inflation rates and significantly lower unemployment rates, but these conditions have changed.