Fed rate cuts seen as "low-risk" move, inflation expectations expected to cool

According to ChainCatcher, citing Golden Ten Data, Federal Reserve Chairman Jerome Powell previously described last month's 25 basis point rate cut as a risk management measure aimed at avoiding undue drag on the economy. Neil Dutta, Chief Economist at Renaissance Macro, pointed out that if another 25 basis point rate cut occurs this week, its risk controllability would be similar. He analyzed that the continued accumulation of weakness in the labor market provides reason to expect inflation to cool accordingly.