Fed's Musalem (2028 voter) says Fed's dual mandate is pro growth, via AEI event; if nominal interest rate comes lower, the 10yr yield will decline too
Importance
Level 1
- Supply chain disruptions from the Iran war include helium, Aluminium, and fertiliser.
- Committed to getting inflation back to 2%.
- Need to demonstrate commitment to 2% inflation every day.
- Core services inflation has been high, goods inflation driven by tariffs.
- If you take away tariffs, you still have 2.5% inflation on 12-month basis.
- Taking steps to reduce demand for reserve from financial system would be smoother way to do it.
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