Fed's Mester: If the labor market is weaker, it may be appropriate to accelerate the pace of interest rate cuts

According to the United Kingdom Financial Times, United Kingdom St. Louis Fed President Mousalem admitted that the labor market has cooled in recent months, but he remains optimistic about the outlook given the low unemployment rate and underlying economic strength. Mousalem had supported a rate cut in September. He said the business sector was in “good shape” and overall activity was “robust”, adding that mass layoffs did not appear to be “imminent”. However, he acknowledged that the risks facing the Fed could require it to cut interest rates more quickly. “I realize that the economy may be weaker than I currently expect and the labor market may be weaker than I currently expect,” he said. “If that’s the case, then a faster pace of rate cuts may be appropriate.”