St. Louis Federal Reserve President Alberto Musalem said on September 21 that further interest-rate increases may be needed to bring inflation back toward the Fed’s 2% target. He cited strong demand and cost pressures extending beyond oil, including commodities and imports. The personal consumption expenditures price index was reported at 3.7% in July. Musalem was not a voting member of the rate-setting committee at the time, so his comments represent his own view, not a decision by the Federal Reserve as a whole.
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Fed’s Musalem Says More Rate Restraint May Be Needed
St. Louis Fed President Alberto Musalem argued that persistent demand and broader cost pressures could keep U.S. inflation above target without further monetary restraint.
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