Fed Official Musalem Says Labor Market Has Steadied While Inflation Stays Above Target
Musalem reported that recent job gains have hovered near breakeven levels after last year's slow cooling. The official added that inflation remains meaningfully above target and that current policy is neutral or mildly supportive in real terms.
ibtimes.co.ukMusalem stated that the labor market appears to have steadied after a slow cooling phase last year. Recent job gains have hovered near the breakeven level. Inflation is meaningfully above target, the official said. Plausible scenarios could require rates to stay steady for a period.
Musalem described current policy as neutral or mildly supportive in real terms. Plausible scenarios exist for both rate increases and decreases. The comments reiterated the FOMC commitment to 2 percent inflation. Reaching the 2 percent target is the best thing the Fed can do for growth and employment.
“Labor market appears to have steadied after slow cooling last year.”
“Current policy is either neutral or slightly accommodative in real terms.”
Key Facts
Potential Impact
- 01
Markets may adjust rate path expectations based on the comments.
- 02
FOMC discussions could weigh steady rates in upcoming meetings.
- 03
Growth and employment outlook tied to reaching 2 percent inflation.
Transparency Panel
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