He President of the Fed of St. Louis, Alberto Musalemadopted a cautiously optimistic tone about the US economy, pointing out the strength in the labor market but warning about the renewed inflation risks.
Outstanding comments
The economy is in a good place, with the labor market in or near full employment.
There are some upward risks for inflation.
There have been some positive trends in inflation recently, but it is expected to increase in the future due to tariffs.
ANDSo too soon to say if tariffs will have a specific or more persistent impact on inflation.
A weakened dollar could contribute to inflation.
The impact of tariffs could feel fully at the end of this year or early next.
It is essential for the Fed to keep the expectations of long -term inflation anchored.
Anchored expectations are what allows Fed to be receptive to changes in the labor market.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
