Federal Reserve Bank of St. Louis President Alberto Musalem voiced in an interview with The Wall Street Journal (WSJ) conducted on Thursday and published on Friday his support for more gradual reductions of the bank's interest rates in 2025 than he initially thought.
"The economic data came in stronger … and the inflation numbers printed higher than desired. So I changed my assessment of risks," Musalem explained. He even expressed his belief the current monetary policy is not as tight as he would prefer. The official noted the stability of the labor market but also the importance of monitoring that data.
Commenting on how United States President-elect Donald Trump's prospective tariffs will impact the country's economy and inflation, Musalem said that "[w]e're going to have to wait and see what is implemented, how it's implemented, what's the size, what's the duration, what are the interactions with other countries."
