Economist Tom Porcelli: Even with a 100 basis point rate cut, the Federal Reserve's policy still leans towards tightening

According to a report by Golden Ten, Tom Porcelli, Chief US Economist for Fixed Income at PGIM, stated that the current 5.3% federal funds rate appears relatively high compared to the current consumer price inflation rate below 3%. Even with a 100 basis point rate cut, the Federal Reserve's policy remains relatively tight, calibrated against significantly higher inflation rates and significantly lower unemployment rates, but these circumstances have changed.