Federal Reserve's Musalem: Inflation risks outweigh employment risks, policy rates may remain unchanged
By: rootdata|2026/05/07 02:54:11
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According to Jinshi News, St. Louis Fed President Bullard stated that there is significant uncertainty regarding the outlook for the U.S. economy and monetary policy. He believes that the risks associated with current inflation are rising compared to employment risks. Bullard pointed out that inflation is significantly above the 2% target level, and the risks are more tilted towards inflation rather than employment.
He mentioned that the Fed's benchmark policy rate is currently at a neutral level, possibly slightly leaning towards easing, and there is a reasonable scenario for maintaining the current policy rate, but further rate cuts or increases may also be necessary.
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