Fed’s Musalem Says Central Bank Must Lean Against Inflation

Federal Reserve Bank of St. Louis President Alberto Musalem said officials should move cautiously with further interest rate reductions with inflation running above the central bank’s 2% target.

Musalem said he supported the Fed’s recent rate cuts as a way to support the labor market, but reiterated his view that policymakers need to maintain restrictive rates to tame elevated inflation.