Fed’s Musalem Says Could Take ‘Quarters’ to See Data to Back Cut
- St. Louis Fed president raises possibility of a rate hike
- Musalem delivers his first monetary policy speech as president
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Federal Reserve Bank of St. Louis President Alberto Musalem suggested US interest-rate cuts could be delayed for some time, saying it’s more likely to take “quarters” not months to see data to support a reduction.
The Fed also needs to consider and explain to the public the possibility of alternative economic scenarios, Musalem said Tuesday in his first speech on monetary policy since taking the helm of the St. Louis Fed earlier this year. Additional rate hikes could be necessary if inflation progress stalls or reverses, he said.