Recently, Federal Reserve official Musallem expressed a series of important views on the direction of monetary policy. He emphasized that when formulating monetary policy, attention should be paid to the overall Intrerest Rate path, rather than the decisions of a single meeting.

Moussailem pointed out that the current level of inflation is still above the Federal Reserve's target and there are persistent risks. Future employment reports will be an important reference in deciding whether to start cutting interest rates. He believes that the current policy stance has become tighter, but before the September meeting, the Federal Reserve still needs more economic data to continuously adjust expectations for the Intrerest Rate path.

Regarding the job market, Musalem stated that although risks are increasing, there have not yet been any significant negative signals. He expects that inflationary pressures caused by tariffs will gradually weaken.

It is worth noting that Musalem emphasized that the future path of interest rates may include a pause in rate cuts. However, he also stated that if risks in the labor market were to significantly escalate, the Federal Reserve does not rule out the possibility of making corresponding adjustments to the policy interest rate.

These remarks reflect the Federal Reserve's cautious attitude in the current economic environment, as well as its adherence to the principle of data dependence. Market participants need to closely monitor future economic data to better anticipate the Fed's policy direction.