Reported about 21 hours ago
St. Louis Fed President Alberto Musalem expressed that the Federal Reserve should avoid committing to interest rate cuts until the impact of the Trump administration's tariff policies is clear. He sees equal chances of tariffs causing either a temporary price surge or a more persistent inflation scenario. Musalem warned that acting prematurely could lead to underestimating inflation's persistence, potentially resulting in negative consequences for inflation and employment. With ongoing uncertainty about the final tariff schedule, Fed officials have opted to maintain the current interest rate range.
Source: YAHOO