finance
Fed Official Musalem Says Labor Market Has Steadied With Inflation 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.
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Musalem 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.”
