Fed's Musalem: Inflation expectations moved higher - Breaking The News

Fed's Musalem: Inflation expectations moved higher

20 February

1 min read

EPA/MATTHEW CAVANAUGH

Federal Reserve Bank of St. Louis President Alberto Musalem said on Thursday that inflation expectations have moved higher "notably" in the latest three months, which would make the Fed's job more challenging if it is sustained.

"The risk that inflation expectations could become unanchored is higher than it would be if the economy was operating with slack and if consumers and businesses had not recently experienced a period of high inflation," the central banker stated in a speech at the Economic Club of New York.

Musalem further emphasized that a more restrictive monetary policy would be appropriate if the upward trend in inflation continues, adding that currently there are a lot of risks in the economy on "many fronts."

inflation monetary policy fed musalem

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