APRIL 15, 2026 AT 07:03 PM
Fed's Musalem (2028 voter) says current range of interest rate is likely appropriate for some time; oil shock likely feeding core inflation and expects it will be near 3% through year-end
Importance
Level 1
- Supply shocks put Fed's inflation and employment goals at risk.
- Has lowered his GDP estimates for the year to between 1.5-2% (prev. 2.0-2.5% pre-war).
- Easing tariff impact will help lower inflation, housing inflation also moving in right direction.
- Does not see clear impacts yet from war on consumption.
- Unemployment rate could rise a couple of tenths of a percentage point as economic growth slows.