[Analysis Suggests Fed Rate Cut This Week May Be a Low-Risk Move]
Federal Reserve Chair Jerome Powell previously defined last month's 25-basis-point rate cut as a risk management measure aimed at avoiding undue drag on the economy. Renaissance Macro Chief Economist Neil Dutta stated that if another 25-basis-point rate cut occurs this week, its risk controllability would be similar to the previous one. Dutta pointed out that the persistent accumulation of weakness in the labor market, potential cooling of inflation, and multiple corporate layoff plans indicate a worsening employment environment. Additionally, he believes that after excluding tariff factors, core inflation levels are close to the Fed's regulatory target.