MNI BRIEF: Fed's Musalem Calls For Patient Approach To Policy
MNI (WASHINGTON) - Federal Reserve officials can afford to be patient about deciding what to do next on interest rates because economic growth is strong and inflation remains above target, St. Louis Fed President Alberto Musalem said Monday.
"Inflation has continued to decline but remains above the FOMC’s 2% target. More monetary policy work is needed to achieve price stability," he said in prepared remarks to a NABE conference. "Monetary policy is well positioned to address risks to both sides of the Fed’s dual mandate. I believe a patient policy approach now will help us as we seek maximum employment, price stability and a durable economic expansion."
"While I continue to expect the economy to grow at a good pace in coming quarters, I would become concerned if we begin to see more evidence of a consumer pullback or a dampening of business confidence and investment plans," he added.