Fed’s Musalem Urges Patience on Rate Cuts

St. Louis Fed President Alberto Musalem says it’s too soon to commit to lowering interest rates. He warns that:

Tariffs could push prices higher — the Fed must see if this inflation is temporary or lasting.

Economic signals are mixed — inflation risks remain, but the job market is showing early weakness.

Cutting rates too soon could backfire, harming both price stability and employment goals.

Markets expect a cut as early as September, but Musalem stresses waiting for clearer data before moving.