Federal Reserve Musallam: If labor market risks intensify, policy rates may need to be adjusted
2025-08-23 00:05:53
Mr. Musalem said the focus should be on the entire path of interest rates, not just the rate decision at a particular meeting. Inflation is already above target and there are persistent risks. Depending on the content of the next jobs report, it could influence the decision to cut rates. Risks to the jobs market are rising but not yet visible and the inflationary effects of tariffs are expected to fade. The path of interest rates could include a pause in rate cuts.
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