St. Louis Fed Pres. Musalem is speaking and says:
- Assurance inflation is returning to 2% target needed before further policy changes.
- His baseline is for inflation to return to 2%, but risks are skewed to the upside.
- Inflation expectations have moved higher, would make Fed's job more difficult if sustained.
- There are scenarios where progress on inflation stalls or inflation rises alongside a weakening labor market.
- Inflation risks greater than risk labor market could weaken
- Could be appropriate for Fed to become more restrictive if inflation is sustained
Musalem is speaking to the NY Economic Club
