Fed’s Musalem Flags Possible Rate Cut Pending August Jobs Data

Federal Reserve policymaker Adrian Musalem said the central bank is weighing the possibility of either pausing or cutting interest rates, depending on how upcoming economic data unfolds. He stressed that officials are concentrating on the overall policy trajectory rather than the decision at any single meeting. Musalem noted that the next U.S. employment report could warrant a rate cut if it signals a material deterioration in labor-market conditions. He warned that risks to jobs growth are rising and may not yet be fully reflected in official statistics. The Fed will continue to reassess the path of rates through its September policy gathering, Musalem added, indicating that adjustments could be made as more information becomes available.