FED OFFICIAL: U.S. ECONOMY STABLE, BUT INFLATION RISKS LINGER

Fed’s Musalem says no stagflation as financial conditions support growth.

Labor market remains strong, though risks like reduced hours and wage pressure need monitoring.

🔹 Inflation expectations are anchored

🔹 Tariff impact may surface later this year

🔹 Dollar devaluation could lift inflation

🔹 Companies cautious on layoffs; hiring slows

Outlook stays favorable, but tariff-driven inflation risks remain on the radar.

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