Free Trial

MNI: Fed’s Musalem Supported 50BP Cut, Sees Gradual Cuts Ahead

St. Louis Fed president says he expects gradual rate cuts but officials must be ready for different scenarios.

The Federal Reserve will likely need to keep cutting interest rates gradually toward a neutral level barring unexpected surprises on employment or inflation, St. Louis Fed President Alberto Musalem said Monday.

“I believe it will likely be appropriate to further reduce the target range for the federal funds rate over time toward a neutral posture, with the size and timing of reductions depending on incoming data, the evolving outlook and the forward-looking balance of risks around this outlook,” Musalem said in prepared remarks to the Money Marketeers in New York.

Keep reading...Show less
346 words

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.

The Federal Reserve will likely need to keep cutting interest rates gradually toward a neutral level barring unexpected surprises on employment or inflation, St. Louis Fed President Alberto Musalem said Monday.

“I believe it will likely be appropriate to further reduce the target range for the federal funds rate over time toward a neutral posture, with the size and timing of reductions depending on incoming data, the evolving outlook and the forward-looking balance of risks around this outlook,” Musalem said in prepared remarks to the Money Marketeers in New York.

Keep reading...Show less