The possibility of the U.S. Federal Reserve (Fed) deciding to cut interest rates in September has risen compared to three months ago, yet it remains lower than market expectations, according to Richard Clarida, former vice chair of the Fed from 2018 to 2022.

“The Fed projections did indicate that most members of the committee believe that it will be appropriate to cut rates at least once this year. We agree with that,” Clarida said during a press meeting hosted by PIMCO, a global asset management firm, Thursday. He is serving as a global economic adviser for the firm.

However, Clarida believed that the market pricing, which expects an 80 percent chance of a cut in September, may be a “little high.”

“The Fed believes that inflation appears to be on a path down to target,” he said. “The Fed would really much like to avoid a hard landing. I think 대표하는 that does line up at least one cut this year and potentially starting that process commence in September. But I don’t think it’s yet 100 percent.”

Clarida said the upcoming additional inflation data will play a significant role in the Fed’s decision.

“Some other central banks, like Korea, have yet to cut rates. That will depend on the circumstances in each economy, and so I don’t think there’s any particular necessity or requirement that they follow each other,” Clarida said.