Economist Tom Porcelli: Even with a 100 bps rate cut, Fed policy is still on the tight side

Tom Porcelli, chief U.S. economist at PGIM Fixed Income, said the current 5.3 percent federal funds rate looks relatively high compared to current consumer price inflation below 3 percent, and that even with a 100-basis-point rate cut, Fed policy is still on the tighter side of policy, which is calibrated to significantly higher inflation and significantly lower unemployment, but those circumstances have changed .