Fed's Musalem (2028 voter) says further interest rate cuts not advisable, policy is now neutral and the economy does not need stimulus
Importance
Level 1
- Expects inflation to decline towards 2%, but sees a risk it could remain above 2% for longer.
- Not all of current inflation is from tariffs.
- Risk of a significant job market downturn has fallen.
- Hopes productivity growth continues, but notes it's too early to depend on it.
- Risks are balanced, further rate cuts only needed if the job market were to decay or inflation falls.
- Expects economy to continue growing above trend, boosted by credit conditions and fiscal policy.
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