Fed’s Musalem Says It’s Too Soon to Know Tariffs’ Impact on Inflation

Federal Reserve Bank of St. Louis President Alberto Musalem said he sees upside risks to inflation, but it’s too early to know whether tariffs will have a persistent impact on prices.

“It’s going to take time for the tariffs to settle,” Musalem said Thursday during a discussion in St. Louis organized by the Official Monetary and Financial Institutions Forum. “There’s a scenario where we could be in Q4 this year, or Q1 or Q2 of next year where tariffs are still working themselves into the economy,” he added, referring to calendar quarters.