Odaily Planet Daily news: St. Louis Fed President Musalem said on Wednesday that the Federal Reserve’s current interest rate stance is likely still appropriate for the foreseeable future, and he may support either a further rate cut or a rate hike depending on how the economy develops. Musalem said that the Fed’s target rate of 3.5%-3.75% is a good balance in the face of risks such as persistent inflation and a labor market showing fragile signs that have emerged in recent months. The target rate may be on the lower end of the neutral range, indicating that if the Fed were to cut rates further, it could unintentionally push up inflation. Musalem noted: “Policy can effectively address the risks of the dual mandate, and I expect the current policy interest rate level will remain applicable for some time.” He said that if the labor market weakens and a rate cut would not damage the Fed’s credibility in fighting inflation, he may ultimately support a further rate cut. But he also said that if inflation rises, or if the public loses confidence in the Fed’s ability to respond to inflation, he may support a rate hike. (Jin10)
FRBのムサライム：現在の金利設定は依然適切です
Odaily Planet Daily news: St. Louis Fed President Musalem said on Wednesday that the Federal Reserve’s current interest rate stance is likely still appropriate for the foreseeable future, and he may support either a further rate cut or a rate hike depending on how the economy develops. Musalem said that the Fed’s target rate of 3.5%-3.75% is a good balance in the face of risks such as persistent inflation and a labor market showing fragile signs that have emerged in recent months. The target rate may be on the lower end of the neutral range, indicating that if the Fed were to cut rates further, it could unintentionally push up inflation. Musalem noted: “Policy can effectively address the risks of the dual mandate, and I expect the current policy interest rate level will remain applicable for some time.” He said that if the labor market weakens and a rate cut would not damage the Fed’s credibility in fighting inflation, he may ultimately support a further rate cut. But he also said that if inflation rises, or if the public loses confidence in the Fed’s ability to respond to inflation, he may support a rate hike. (Jin10)