The U.S. Federal Reserve cut interest rates for the first time in four and half years earlier in September. The half-a-percentage-point reduction was double the usual size. Considering that inflationary momentum is slowing, the Fed deserves praise for moving quickly to address the risk of labor market deterioration.
In proceeding with further rate cuts, the Fed should keep a close eye on the stability of the global economy and markets, and flexibly implement policies in accordance with labor conditions.
