US Fed has already made a blunder, claims noted American economist

economictimes.indiatimes.com:

Larry Summers concerns regarding the decision of the Federal Reserve to cut interest rates by a half percentage point are an error. Larry Summers demonstrates that, as per robust labor market data, the U.S. economy remains strong by making the potential rate cut unnecessary.

Criticism by Larry Summers

American economist and Harvard University Professor Lawrence H. Summers expressed that the recent half-point interest rate cut of the federal reserve is a mistake in light of September's stronger-than-expected jobs report. Summers made an argument that the employment figure states an economy that did not need the aggressive monetary easing the Fed implemented. The labor market of the US economy reflects an unexpected strength in September, according to the Fox Business.

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According to the report of the labor department, the employers added 254,000 jobs in September, which exceeded the gain of 140,000 predicted by the economists at LSEG. The latest figure also reflects a drop in the unemployment rate to 4.1%, marking a recovery in the scenario of the job market. Larry Summers used social media to criticize the approach of the federal reserve in handling the economy. He has expressed deep concerns regarding the policy of the central bank. However, the latest report has sparked discussions based on the monetary strategy of the federal reserve.

Sharp shift of the financial market

The financial markets are shifting sharply based on the