Musalem says inflation risks stay front and center as policy remains neutral

9 articles · Updated · investinglive.com · May 6

The St Louis Fed chief said rates may need to stay unchanged for some time, while tariff and oil shocks add to underlying inflation above the Fed's 2% target.
He said financial conditions are accommodative, the labour market has stabilised and payroll growth is near breakeven, but firms are delaying hiring because of uncertainty.
Although he said scenarios could still justify either cuts or hikes, his overall tone was modestly hawkish. Musalem is not a voting FOMC member in 2026.

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