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MNI: Fed's Musalem Says Upside Inflation Risks Have Risen

St. Louis Fed president promises further rate cuts if inflation keeps falling.

MNI (WASHINGTON) - St. Louis Fed President Alberto Musalem said Wednesday he supports further interest rate cuts if inflation keeps falling, but added the risks that it doesn't have risen even as the labor market stays healthy.  

"Further easing toward a neutral policy stance will be appropriate to support employment if inflation continues to converge toward 2%," Musalem said in describing his base case scenario. 

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MNI (WASHINGTON) - St. Louis Fed President Alberto Musalem said Wednesday he supports further interest rate cuts if inflation keeps falling, but added the risks that it doesn't have risen even as the labor market stays healthy.  

"Further easing toward a neutral policy stance will be appropriate to support employment if inflation continues to converge toward 2%," Musalem said in describing his base case scenario. 

Keep reading...Show less