St. Louis Fed president says further rate increases may be needed to lower inflation

Sep 21, 10:42 PM UTC

Musalem argues that persistent demand and supply pressures could require tighter policy

St. Louis Fed President Alberto Musalem said further interest-rate increases would likely be needed to bring inflation toward the Federal Reserve’s 2% target. He attributed the pressure to resilient demand and commodity-price increases extending beyond oil, while saying the labor market was not the source of inflation. Musalem is not currently a voting member of the Federal Open Market Committee and did not specify the timing or scale of future increases, so his remarks do not establish the Fed’s next decision.

Reuters: Fed's Musalem says more rate hikes likely needed to quell inflation