Musalem: Inflation risk outweighs employment risk Policy interest rates may remain unchanged

St. Louis Fed Chairman Musalem said that there is huge uncertainty in the outlook for the U.S. economy and monetary policy. He believes that compared with employment risks, the current risks to inflation are rising. Musalem pointed out that inflation is significantly higher than the 2% target level and that risks tend more towards inflation than employment. He mentioned that the Federal Reserve's benchmark policy interest rate is currently at a neutral level and may be slightly loose. There are reasonable scenarios to keep the current policy interest rate unchanged, but further interest rate cuts or interest rates may also be needed.