MetLife's Drew Matus: It could be risky for the Fed not to cut in December

Labor Market & AI Impact - Youth unemployment is approximately 180% of the average worker's unemployment rate, raising concerns about its potential impact [5] - The advent of AI is causing job displacement, similar to the introduction of computers, leading to higher youth unemployment [4] - Companies may not achieve the expected returns on AI investments in the short term, impacting hiring decisions [6] - The integration of AI requires not only technology but also process and cultural changes within organizations, which takes time [8][9] Consumer Sentiment & Spending - Upper-income individuals are beginning to worry about their children's job prospects, negatively affecting consumer sentiment and spending [2] - The Fed should avoid actions that could negatively impact the US consumer, especially during the holiday shopping season [13] - If the market anticipates a rate cut and it doesn't happen, consumer spending could be negatively affected [14] Monetary Policy & Inflation - The Fed should prioritize high growth over strictly adhering to a 2% inflation target, given stable inflation expectations [12][15] - Even with the Fed's actions, inflation is likely to remain around 3%, suggesting limited control over this factor [14]