In his first policy speech, St. Louis Federal Reserve President Alberto Musalem signaled a cautious approach to cutting interest rates. Musalem emphasized that it could take 'months, and more likely quarters' of falling inflation, moderating demand, and expanding supply before the U.S. central bank considers reducing rates. This stance indicates a hawkish bias, reflecting the need for sustained economic improvements before any rate cuts are implemented.
Fed's Musalem signals wary approach to cutting rates in debut speech https://t.co/chQ2f7D1zf https://t.co/tsizbuxULw
St Louis Fed Prez Musalem's speech point to an extreme hawkish bias Discusses inflation cooling & labor market slowing but says conditions for rate cut "could take months & more likely quarters to play out" Would've been an optimal speech last year😉 https://t.co/8zgbFHJFza
New @StLouisFed President Alberto Musalem, in his 1st policy speech, said it’s more likely to take “quarters” -- not months -- to see economic data to support an interest-rate cut. https://t.co/9hplg3asIZ via @economics
🔵 FED'S MUSALEM SIGNALS CAUTIOUS APPROACH TO CUTTING RATES IN DEBUT SPEECH The U.S. central bank should only start to cut interest rates after "months, and more likely quarters" of falling inflation, moderating demand and expanding supply, St. Louis Federal Reserve President… https://t.co/AddJTYOoIv
Fed's Musalem: Confidence to cut rates could take months and likely quarters to play out https://t.co/G4cvJwCtqW