Saralnama
St. Louis Federal Reserve Bank President Alberto Musalem stated he requires additional economic data before deciding on supporting a rate cut at the Federal Reserve's September 16-17 meeting. He noted inflation is currently near 3%, above the Fed’s 2% target, and may persist, while risks to the labor market have not yet materialized. Musalem emphasized that current policy is appropriate for a full employment labor market with inflation above target but may need adjustment if labor market risks increase. He plans to update his outlook and risk assessment until just before the meeting. Musalem spoke at the Fed’s annual research conference, where Chair Jerome Powell indicated a possible rate cut in September due to fading tariff-driven inflation and rising job market risks. However, Musalem highlighted the uncertainty and the need for more data on tariffs’ inflation impact and labor market conditions. The September meeting will include updated projections on inflation, unemployment, and interest rates, with an August jobs report expected to be pivotal. Musalem also noted that clearer fiscal, trade, and immigration policies reduce uncertainty, aiding his assessment of economic risks and policy direction. (Updated 23 Aug 2025, 07:53 IST; source: link)