Former Obama administration economist: Fed may only cut benchmark interest rate once this year

Jason Furman, a former senior economist in the Obama administration and current Harvard University professor, believes that if the labor market remains healthy, the Federal Reserve may only cut its benchmark interest rate once this year. Jason Furman said that the Fed has entered a new stage of "needing a reason" to cut interest rates. Last year, the Fed thought that "everything is good, so it might as well cut interest rates", but if the labor market remains healthy, given concerns about the inflation outlook and uncertainty about whether interest rates are already in the best position to slow demand, then a 25 basis point rate cut this year may be the most likely thing to happen. However, Jason Furman added that if the situation changes and the unemployment rate begins to rise, "the Fed will intervene" and ease policy. (Jinshi)