St. Louis Fed's Musalem Says Inflation Still Too High, More Rate Hikes May Be Needed
JH Kim
Summary
- Alberto Musalem, president of the Federal Reserve Bank of St. Louis, said inflation remains too high and additional rate hikes may be needed.
- He said further monetary tightening may be required for the Federal Reserve to achieve its 2% inflation target.
- He said the U.S. economy remains solid and that business contacts are more concerned about inflation than the labor market.
Forecast Trend Report by Period
Alberto Musalem, president of the Federal Reserve Bank of St. Louis, said additional interest-rate increases may be needed to bring inflation back to target.
Walter Bloomberg reported on October 8 that Musalem said inflation remains elevated because of persistent demand pressures and supply shocks.
He said further monetary tightening may be needed for the Federal Reserve to achieve its 2% inflation target. Under current economic conditions, policymakers may need to consider raising rates.
Musalem also said the U.S. economy remains solid. He added that business contacts are more concerned about inflation than the labor market.
JH Kim
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