Fed's Musalem Says More Rate Hikes Likely Needed to Cool Prices, Policy May Still Be Stimulative
Federal Reserve Bank of St. Louis President Alberto Musalem said additional interest rate increases may be needed to achieve the central bank’s inflation goal, adding that monetary policy may still be stimulating the economy after this month’s hike. He noted that persistent demand and recurring supply forces continue to keep inflation risks elevated, and without further policy restraint, inflation is more likely to be substantially above the 2% target in 18 months than at target. Musalem made these remarks in a Monday interview with Reuters.
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