St. Louis Fed’s Musalem Says Rate Hike May Soon Be Needed as Inflation Risks Persist
JH Kim
Summary
- St. Louis Fed President Alberto Musalem said another benchmark interest rate hike may soon be needed to restore price stability.
- Musalem said inflation remains elevated, the risk of further increases persists, and monetary policy remains accommodative overall.
- Musalem said the US economy and labor market remain solid, leaving room for further tightening, and stressed that gradual rate hikes at an earlier stage would reduce the risk of sharper increases later.
Forecast Trend Report by Period
Alberto Musalem, president of the Federal Reserve Bank of St. Louis, said another increase in the benchmark interest rate may soon be needed to restore price stability.
Walter Bloomberg reported on October 30 that Musalem said inflation remains too high and the risk of further increases is still present.
He said monetary policy and financial conditions have tightened somewhat recently but remain accommodative overall. He added that the US economy and labor market remain solid, leaving room for additional tightening.
Musalem said raising rates gradually at an earlier stage could reduce the risk that sharper increases will be needed later.
JH Kim
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