Federal Reserve Musalem: Inflation target still not met

Alberto Musalem, president of the Federal Reserve Bank of St Louis, said he supported Fed policymakers' decision to leave interest rates unchanged last week, adding that the central bank was still falling short of meeting its inflation target. "The current state of the economy suggests that we are not yet on target for inflation," Mr. Musalem said at an event in Itabena, Mississippi, on Friday. He added that "we are not missing our employment target" and that the labour market is close to full employment. Mr. Musalem said last month that he expected the inflationary effects associated with tariffs to be felt over the summer, but it was too early to tell whether they would be lasting.