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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