Federal Reserve's Moussallem: Inflation risk is surpassing employment risk

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ME News Report, May 7 (UTC+8), St. Louis Federal Reserve President Mu Salameh stated that there is significant uncertainty about the outlook for the U.S. economy and monetary policy, but he believes that compared to employment risks, the current inflation risks are rising. Mu Salameh said on Wednesday: “Inflation is significantly above our 2% target level. We face risks on both employment and inflation. Based on my understanding, the risks are tilting more toward inflation rather than employment.” Mu Salameh stated that the Federal Reserve’s benchmark policy rate is currently at a neutral level, neither stimulating nor restraining the economy, or possibly slightly leaning towards easing. He said: “There are very reasonable scenarios that require us to keep the current policy rate unchanged for a period of time.” However, he also pointed out that he sees some scenarios that may require officials to further cut or raise interest rates. (Source: Jintou)

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