Fed’s Musalem Flags Risk of Higher Inflation, Weaker Job Market
Products are restocked inside a store in Saddlebrook, New Jersey.
Photographer: Gabby Jones/BloombergThis article is for subscribers only.
Federal Reserve Bank of St. Louis President Alberto Musalem said there’s a near-term risk that inflation will rise while the labor market weakens, requiring policymakers to be vigilant as they monitor the economic data.
Musalem reiterated his concern that some of the inflationary effects of tariffs may be persistent and emphasized that it will be important for officials to keep long-term inflation expectations anchored.