Fed's Case for Rate Cuts is 'Pretty Weak,' Says Hubbard

Glenn Hubbard, Dean Emeritus at Columbia Business School, discusses the impact of AI and Fed independence on the US economy. Federal Reserve Vice Chair Philip Jefferson on Monday said he sees increased downside risks to employment, though repeated his view that policymakers need to proceed slowly as interest rates approach neutral. “I see the balance of risks in the economy as having shifted in recent months with increased downside risks to employment compared to the upside risks to inflation, which have likely declined somewhat recently,” Jefferson said in the text of a speech he’s scheduled to deliver Monday at the Kansas City Fed. Jefferson’s remarks suggest he is keeping options open on whether to ease rates or hold steady when policymakers next meet on Dec. 9 -10. Fed officials cut their benchmark rate last month by a quarter percentage point, reflecting continued worry over the labor market. (Source: Bloomberg)