Federal Reserve Governor Bauman: It is appropriate to support three interest rate cuts this year and ignore temporarily high inflation

According to a report by Golden Finance, regarding inflation, Federal Reserve Governor Bauman stated that core personal consumption expenditure inflation seems to be moving closer to the 2% target than the data shows. He believes that ignoring temporarily high inflation is an appropriate approach. The risk of upward inflation has been reduced, and there is more confidence that tariffs will not lead to sustained inflation. Bauman believes that the sharp slowdown in employment growth may be due to a significant weakness in labor demand. Bauman stated that relaxing regulations, reducing taxes, and creating an environment conducive to business development may offset the impact of tariff related factors on economic activity and prices. In addition, he supports three interest rate cuts this year. (Zhitong Finance)