St. Louis Fed Pres. Musalem: Assurance inflation is returning to 2% before policy changes

St. Louis Fed Pres. Musalem is speaking and says:

• Assurance inflation is returning to 2% target needed before further policy changes.
• His baseline is for inflation to return to 2%, but risks are skewed to the upside.
• Inflation expectations have moved higher, would make Fed’s job more difficult if sustained.
• There are scenarios where progress on inflation stalls or inflation rises alongside a weakening labor market.
• Inflation risks greater than risk labor market could weaken
• Could be appropriate for Fed to become more restrictive if inflation is sustained

Musalem is speaking to the NY Economic Club

This article was written by Greg Michalowski at www.forexlive.com.