Is the Fed ‘sleepwalking into a policy mistake?': Abrdn analyst calls for faster easing of rates

British fund manager abdrn predicts a soft landing for the US economy, but warns of a possible prolonged slowdown in 2025. Kenneth Akintewe, head of Asian sovereign debt at the company, questions whether the economy is weaker than reported and if the Federal Reserve should already be easing. He highlights revised non-farm payroll data that reflects a weaker economic picture. Akintewe argues that the time it takes for policy changes to impact the economy means sufficient easing may be required. He also questions why the policy rate remains high despite lower inflation rates. Recent data on the personal consumption expenditures price index shows a small increase, indicating a potentially smaller rate cut. Market expectations for the September Fed meeting currently lean toward a 25-basis-point cut.