Fed’s Musalem Sees Increased Risk of Inflation Stalling Above 2%
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Federal Reserve Bank of St. Louis President Alberto Musalem said policy should remain “modestly restrictive” until it’s clear inflation is on track to the central bank’s 2% target, and that he sees increased risks that progress may stall or even reverse.
Musalem emphasized his baseline scenario is for inflation to continue to move toward 2% amid a solid labor market. He noted, however, that upcoming changes in government policy could have a material impact on the path of the economy.