Federal Reserve official Alberto Musalem stated that given persistent and still upward-biased inflation risks, the Federal Reserve needs to raise interest rates again "soon" to restore price stability. He noted that despite moderate tightening, monetary policy and financial conditions remain accommodative, and the U.S. economy and labor market remain strong, providing room for further tightening. Musalem believes that earlier and more gradual rate hikes will reduce the risk of more disruptive measures in the future.