Svmuu News According to St. Louis Fed President Musalem on Wednesday, the Fed's current interest rate stance may remain appropriate for the foreseeable future, and he could support either the next rate cut or hike depending on economic developments. Musalem stated that the Fed's 3.5%-3.75% interest rate target strikes a good balance in the face of risks such as persistent inflation and a labor market showing signs of fragility in recent months. This target rate is likely at the lower end of the neutral range, suggesting that further rate cuts by the Fed could inadvertently push inflation higher. Musalem noted, "Policy is well-positioned to address the risks to the dual mandate, and I expect the current level of the policy rate to remain appropriate for some time." He said he could ultimately support further rate cuts if the labor market weakens and such cuts do not undermine the Fed's credibility in fighting inflation. However, he also indicated he could support rate hikes if inflation rises or if the public loses confidence in the Fed's ability to manage inflation. (Jin10)