Fed’s Musalem Signals Policy in Good Place, Warns of Risks

Federal Reserve Bank of St. Louis President Alberto Musalem said interest rates are well positioned for the current economic environment.

“The current modestly restrictive setting of the policy rate is consistent with today’s full-employment labor market and core inflation nearly one percentage point above the Fed’s 2% target,” Musalem said Wednesday in prepared remarks for an event at the Peterson Institute for International Economics in Washington.