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MNI: Fed's Musalem - Could Be 'Quarters' Before First Rate Cut

St. Louis Fed president questions restrictiveness of current monetary policy stance.

St. Louis Fed President Alberto Musalem in his first public remarks Tuesday questioned the degree of restrictiveness of the current stance of monetary policy and said it "could take months, and more likely quarters" before he's confident that a reduction in interest rates is appropriate.

"The current policy posture balances the risk of easing policy too early with the risk of easing policy too late," he said in prepared remarks, adding that monetary policy "is continuing to exert downward pressure on aggregate demand and inflation."

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St. Louis Fed President Alberto Musalem in his first public remarks Tuesday questioned the degree of restrictiveness of the current stance of monetary policy and said it "could take months, and more likely quarters" before he's confident that a reduction in interest rates is appropriate.

"The current policy posture balances the risk of easing policy too early with the risk of easing policy too late," he said in prepared remarks, adding that monetary policy "is continuing to exert downward pressure on aggregate demand and inflation."

Keep reading...Show less